I promised myself I wouldn't do this. I wouldn't start a blog where I ranted and raved like a two year old child about things that pissed me off. After all there's so much about the world that I don't know I could be throwing a temper tantrum without all the data. Like that's ever stopped anyone before.
DBA or "Doing Business As" is a legal term that allows a company to have more than one name. While the company is required to file these names with the government, they are not required to inform the customers/consumers in any way (except in California, where they are required to publish it in the local newspapers for some set period of time).
That means a company with $10-$50 can file for a fictious business name in order to operate multiple businesses without creating new legal entities. And since, apparently, documents and contracts signed with this fictious name are still legally binding, you, as a customer/consumer, have absolutely no idea what you are getting into when you sign any document with a business.
Since DBA are a legal tool and, as far as I can tell, the only way to find out a businesses DBA's are to search the name on the BBB, it is quite simple for a business to pose as any other business.
Recently I was screwed by an energy service provider (yes, ALWAYS read the fine details in a contract. Usually the phrases and sections that are the most unclear are attempts to fuck you over.). When they sent me a copy of the original contract, I noted that it was with a different company. By the time I was talking to a credit collection agency, they were telling me, same company. I paid it off (not much money and didn't want it to show up on my credit report).
In anger I searched their name on the BBB, originally to complain. But to my surprise, the original company I signed with was NOT listed as their DBA. Similar constructions exist, but in the world of the legal similar is not close enough.
[Ex. Business Company A, Inc. is not the same as Business Company A Corp.]
I have e-mailed them directly to see what kind rational legal excuse they offer. But if it is not sufficient...I'm going straight to the BBB and reporting them for fraud.
The 2 main arguements for DBA are:
1. Sole Proprietors - Individuals who do not want to use their name when conducting business. If you are doing so much business that you need a professional business name, you probably ought to be filing for an EIN and registering your business. Sure this is much cheaper and lets you use a typical business name (corp., LLC, partnership) without being one! Plus you can open up business accounts and get business phone listings! All while being an individual running a "business".
2. Businesses - Companies can practice their business without using their legal name. Why would you ever let a business do that? The claim is that it allows businesses to create a generic business name, and then more specific DBA's for the various regions the business expands to. Sounds like a big business to me.
The potential for a business to engage in fraud with "Doing Business As" names is exceptionally higher, than without. In this day when fraud and indentity theft are too common, difficult to protect against, and signficantly easier than before (10 years ago, 20 years ago, 40 years ago, etc.), such a legal tool as a DBA seems at the very least highly suspect, and at worst unethical.
Thankfully when I'm dead, I wont have to worry about greedy leeches looking for ways to manipulate the system and take what they have not earned.
4/23/2013 UPDATE:
"A DBA (short for "doing business as") is simply an assumed or fictitious name that a business uses which is different than the true legal name of the business."
http://www.limitedliabilitycompanycenter.com/sole-proprietorship-vs-llc.html
So how can a legal document made by a fictitious name of a business be legally binding?
