How to Set Up a DBA in Maryland

What is a DBA?

DBA refers to “doing business as.” Not all states use the DBA acronym but rather refer to the practice of using another name as using an assumed name, a fictitious name, an alias name, or a trade name.

No matter what it’s called, the DBA meaning is the same in every state. It’s when the name being used for business is different from the name of the legal entity listed on the state registration.

Using a DBA has some advantages for businesses. Sole proprietors use DBAs instead of their personal names for legal protection as it protects personal assets too. Other types of businesses, including a limited liability company (LLC) and general partnerships, find using a DBA name has some tax advantages as well. Others use DBAs for marketing purposes.

How to search DBA names in Maryland 

All DBAs are registered at the state level. Some states push new businesses to register DBAs at the local level by visiting the county clerk’s office, but that’s not the case in Maryland. Since DBA filings are submitted to the state, your DBA must follow certain naming rules.

Yes, there are actual rules to naming a business. Follow the steps below to check online for business names in Maryland.

Go to the free search tool and type the proposed DBA name in the search box.

The Maryland state government has a free online search tool on its business express site rather than on the Secretary of State’s office site. The Maryland State Department of Assessments and Taxation handles all business matters in the state.

Since all names must be unique, you must see if the name you’d like is not being used by another company.

The express site is the right place to search through business names to make sure the one you want is available. You will need to register an account with the page to use it to file electronically.

The search will show companies within Maryland that have the same or similar name as what you want. You can keep searching until you come up with a name that no one else is using. 

Maryland doesn’t offer a chance to reserve a trade name but does allow you to register it when you find the right name. More on that is below.

How to register a DBA in Maryland

Maryland expects those registering a trade name to already have a legally registered business listed with the state. Most forms can be found on the Maryland Business Express site. 

Those who want to file a trademark may also want to consult an attorney to ensure the process is done legally and properly. You will also want to check to see if you need to file your trademark with the state as well. You can learn more about filing for a trademark in Maryland here.

Those wishing to conduct business as a Maryland DBA must fill out a form to Register a Trade Name. The form can be found here.

Maryland requires you to list the department ID of your business associated with the trade name and other information. Forms can be filed electronically or printed out and mailed. 

You can pay using a debit or credit card or money order. The filing fee is $25.

Small business owners hoping to do business in Maryland can find many answers to their questions here. The express site also has a chatbot for simple questions.

Entrepreneurs can also email the Maryland Business Express at [email protected]. You can call using the local number of 410-864-5100 or the toll-free number of 1-800-492-0479. The mailing address is:

What comes next

You will have more work to do before launching your DBA business. You must complete other tasks to ensure your business is legal and running smoothly when it opens. 

Maintaining proper accounting is important, and opening a business account for your DBA is a good way to do that. It is how you separate your personal assets from your business assets. This change can be crucial for a sole proprietor who now needs more separation of personal and professional matters.

Many banks require a certificate of good standing or a trade name certificate from the state before allowing a DBA or business to open a business bank account. Sole proprietors and general partnerships wanting to use a DBA name can expect banks to mandate this.

A federal employer identification number is issued by the Internal Revenue Service (IRS) to the business to identify the business and link it with its tax filings. Most business entities, like LLCs, must have an EIN, although sole proprietors are not.

However, an EIN is required for many business activities like hiring people, filing business tax forms, and obtaining loans. Those with a DBA will be filing separate taxes, so that they will need an EIN.

Tax codes can be complicated, and that is especially true when it comes to business tax codes. Maryland is no exception, as it has various elements to how it taxes businesses. Even as a DBA, you may have special taxes or exemptions that apply. You can look at all the tax requirements more completely for either your DBA or your LLC by visiting the Maryland Department of Assessment and Taxation site.

Maryland mandates that businesses carry worker’s compensation and automobile liability insurance. You must have worker’s compensation insurance even if there is only one employee. There are detailed minimums for auto insurance. You should include property and business liability on your list of necessary insurance even though Maryland doesn’t mandate those. Many clients and other businesses likely require liability. 

You may know where you want your business to be in a few years, but it’s good to write it all down. Creating a business plan with policies and goals is a good way to set your DBA in motion. It provides a business structure to set all your future plans and policies on. Plus, a well-organized business plan can lure investors to your company.

One of the most important things you can do for your new DBA is to create a marketing plan. It can be more complicated than you realize, and you may need to hire professional help to see it through.

A marketing plan will ensure your business gets noticed. You might consider marketing via the internet, radio, television, and the local newspaper. It should also include a campaign to use your DBA name as branding efforts.

Maryland has a wealth of resources for both startups and existing small business owners who want to start using a DBA name. They can offer advice, some organizational planning, help finding a commercial location, education, and even ways to fund your business. Many are free or low-cost.

Some of the resources include:

Who is a DBA best for? 

Sole proprietorships and general partnerships often use DBA names so they can separate their personal name from the business name to protect personal assets. This way, anyone who sues must sue the business, not the person owning the business. It also helps clarify records in case of a federal IRS audit.

Any type of legal business entity can do business under a DBA, and many do it to build a branded image. Others use a DBA because they have multiple niche businesses they wish to keep as separate legal entities. The idea is to keep a DBA name separated from the legal name, which can be a company name or a personal name. The name of the business is one of the most important things you can do.

Why would entrepreneurs choose to set up a DBA in Maryland?

Maryland has plenty to offer small business owners wanting to set up a DBA there. Besides the high quality of life and lots of B2B businesses, the state provides a lot of companies related to logging, shipbuilding, farming, and fishing.

Cost to get a DBA set up

Maryland offers lost-cost DBA registrations. Prices are as follows: