When you’re working to open a business, you’ll need to look into registering a fictitious business name. This task is also commonly referred to as a “DBA,” which stands for “Doing Business As.” A fictitious business name is also known as an “assumed business name” or “trade name.” By registering a fictitious business name, you’re legally asserting that the business operates under that name and not under your own name.
Essentially, filing for a fictitious business name creates an entity separate from the individual owner’s name. This filing also lets the public know the owner’s identity. For example, if an individual registers a fictitious business name of “XYZ Video Productions,” that name is entered in a public database along with the owner’s name.
In some areas, filing a fictitious business name becomes necessary if the person wishes to register a business. For example, in California, people must file a Fictitious Business Name Statement with the County Clerk’s office before they can begin to do business, unless they’re able to operate under their own name. This is done to make sure that the business and the owner can be traced.
Advantages of Registering a Fictitious Business Name
Having an entity separate from the individual also helps to protect the individual from personal liability due to any business debt or legal issues that may arise. Therefore, filing a fictitious business name can provide some financial protection. Furthermore, by filing, you will be able to open a business bank account in the business name.
Filing a fictitious business name also allows you to brand yourself or your business more effectively. You can create a name and then register it with your county so you can be sure that no one else is using it. Not only does this create a unique branding opportunity, but it also allows you to build trust and credibility in the marketplace and protect your business from using a preexisting name.
Filing a Fictitious Business Name is Easy!
Filing for a fictitious business name is simple. You can find forms and instructions at your local Court Clerk’s office, County Recorder’s office, or online. Commonly filed forms may include a Fictitious Business Name Statement, a Certificate of Fictitious Name, or an Application for Registration of Assumed Name. Generally, your application will require you to provide information about the business (name, address, purpose), as well as information about the owner or owners of the business.
The filing fees and requirements may vary based on your location, so it is important to check your local county’s requirements when filing. Additionally, it is important to note that the registration of a fictitious business name does not provide any copyright, trademark, or other legal protection for your business’s name. You may need to consider registering a separate trademark or service mark if you wish to protect it.
When starting your own business, filing a fictitious business name is a crucial step that shouldn’t be overlooked. Although filing paperwork can be a daunting process, it will provide you with the legal protection and branding opportunities you need as you start or continue your business journey.