With anything having benefits, there are also problems with using a DBA. The largest problem is the lack of legal protection for the business owner. Unlike corporate entities that have a legal structure, a DBA is a function in name only. There are no laws that hold the owners of a DBA faultless should legal problems occur.
A DBA, as stated earlier, is nothing more than a brand or name. A DBA is a public document and, therefore, can be used to trace the name and location of the owner. This is why there is no legal protection. Some states, such as New York, require a business to obtain a DBA in order to have bank accounts or conduct contracts for the business. This includes sole proprietors. While this is a simple matter of getting the proper forms from the local authority, there are fees associated with the license.
This is another of the problems with a DBA; there are fees often associated with getting a DBA for any business. The final problem with having a DBA is the potentially hidden focus of your business. Unless you state, in the name, what your business does or sells, you will have to continually explain that to customers in some form. A related problem concerns limiting your business by choosing a too narrow DBA. If you operate a breakfast café and form your DBA with those terms in it, you have just limited your scope should you want to expand to lunch or catering.