What You Should Know About a Fictitious Name (DBA)

You must decide on a name and the form of your enterprise before starting your business.Thanks to its name, your business will get recognition and stand out from the crowd.

What Is a Fictitious Name?

A fictitious name isn’t your proper legal business entity name. The state or country gives you a formal permission to use it when conducting business. A fictitious business name is also referred to as a “Doing Business As” (DBA), “assumed name,” or “trade name.”All type of businesses, both sole proprietorships, LLCs and corporations can benefit from fictitious names.It’s sometimes written as “d/b/a.”

By registering your fictitious name, you tell the public that your business operates under something other than its true name. It doesn’t affect liability or taxes.

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What About a Business Registered (Legal) Name?

Every business must have a legal name. The latter is registered through the state and also through the process of obtaining a Tax ID or Employer ID number.

What About a Trade Name?

A trade name is used by the business for advertising and trade purposes, with clients, vendors, customers, and the public.

Filing a Fictitious Name

If a different trade name is used for the business, the public has a right to know who the company is run by. When filing a DBA, you should focus on:

  • The impression you want your fictitious business name to make
  • Simplicity
  • Clear language and cultural taboos

What Is a Fictitious Name Certificate?

This is a legal document that shows the operating name of a company, other than the legal name of the company. In the case of a corporation, a fictitious business name is any name other than the corporate name stated in its articles of incorporation.

Advantages of a Fictitious Name:

  • You’ll avoid the complexity and expense of formally creating a business entity to use your desired business name
  • You’ll open a business bank account for receiving and making payments through your company
  • You’ll control costs and minimize the amount of paperwork and compliance tasks associated with expanding your LLC or corporation

How to Register a DBA

To register a fictitious name, you should go to the county registrar and ask to register a business name. It can also be registered with your state’s business department (usually under the state secretary of state). Some states require to publish your DBA in a local newspaper.A fictitious name filing will put your business’s name and your identity on public record.

When filing for a fictitious business name, you’ll be required to complete some paperwork, which is usually a simple one-page form, and pay the applicable filing fee.The cost of filing a fictitious name notice varies from $10 – $100. Make sure you don’t miss the deadline.

When starting a business, applying for working capital is another important issue to focus on. Turn to a reputable business funding provider to get a merchant cash advance or other types of business financing for your business.

A business name is the foundationon which you’re establishing your brand. Be careful when registering your fictitious name so that it won’t drive customers away from your business.

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