How to Account for a Company Name and a DBA in a Contract

Company names can be long and complicated, particularly if there are several companies similar to yours registered in your state. Consequently, you may adopt a "doing business as," or DBA, name. This shortened name makes it easier for customers to refer directly to your business and is perfectly legal. When you sign contracts, however, you'll need to do so as your full company name.

Introducing the Parties

Every contract needs to introduce the parties to the contract -- including your business and the party with whom you're signing the agreement -- in the opening paragraphs of the contract. For example, you might write, "Milton's Automotive Parts LLC is a registered corporation in the state of Florida, hereinafter referred to as Milton's."

'Doing Business As' Name

If your company is primarily known by its DBA, then you need to note the DBA when you introduce the parties. You might write, for example, "Limited Parts Liability Company of South Carolina PC, d/b/a John's Automotive." Some companies have DBAs that are actually run by several different corporations, and if this is the case with your business, you need to list each and every corporation in the opening paragraphs.

Referring to Your Company

Writing out your full company name in a contract can be tedious and wastes precious space. You can refer to your company as its DBA throughout the contract, but you need to note this in the opening paragraph by writing, "hereinafter referred to as John's Automotive." You don't even have to use your company's name. You could simply note that you're referring to it as "the company," "signatory A" or something similar.

Legally Sufficient Signatures

The signature lines of your contract need to list the title of an authorized signatory, as well as the company's full name and DBA. Otherwise, the person signing the contract is signing in her individual capacity, not as an authorized representative of the company, and this can invalidate your agreement or lead to contract disputes.


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