Why You Shouldn’t Change Your DBA Frequently

DBA stands for “doing business as.” Using a DBA gives your business the ability to use an alternative business name. For instance, a sole proprietor may not want to do business under their personal name and elect to do business under another name. Additionally, a large corporation may elect to do business under a name that is separate from the name of the corporation.

Once you’ve chosen a DBA, it’s important to limit the number of times you change it. In fact, changing your DBA, while sometimes necessary, could hurt your business.

 

Old man writing notes or deciding to sign

Changing your DBA can harm your business in more ways than one.

 

Why a DBA Name Change Could Hurt Your Business

 

Your customers likely pay more attention to the value your business adds to their lives than your business name. Your audience associates your awesome products or services, excellent customer service, personal relationships, etc. with your business name.

Changing names not only loses your business brand recognition and affinity, but it will also affect your SEO: You will need a new domain, social media channels and updated content on all your digital and traditional marketing endeavors. In order to maintain the SEO rankings from your old DBA, you will need to implement a Redirect 301. We recommend working with an SEO agency to ensure that that redirect goes smoothly.

In summary, a DBA name change could cause:

  • Confusion among existing customers: Changing your business name could make you seem like a totally different company, especially if you’re re-branding.
  • Disruption of SEO ranking strategy: We recommend getting help from our SEO team for your Redirect 301. Otherwise, you may face negative SEO consequences.

 

Credit Implications of a DBA Name Change

If you follow the process below, your business’s credit history shouldn’t suffer from a DBA name change:

  1. Submit a name change form to the IRS and all other agencies your business is associated with.
  2. Let your creditors know about the change in advance. This way, you can avoid errors in reporting.
  3. Also notify credit bureaus. Forbes has a list of policies and procedures of the major commercial credit agencies when it comes to changing your DBA.
  4. Monitor your business credit reports before and after your DBA name change.

Changing your DBA requires lots of prior organization and communication with many different entities. It’s enough work to change your DBA once, let alone frequently. In order to avoid any credit implications of a DBA name change, do your research and have a solid game plan.

 

Contact PointA

 

Choosing the right DBA is a big part of your business. Reach out to us today for help choosing the DBA that’s right for you. And if you’re re-branding, our team is fully equipped to get your business to point B. Give us a call now and find out how we can help!

Subscribe to Our Blog

Subscribe to the PointA blog for more information. We’ll send you newsletters, blog posts, tips and so much more from time to time.