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.
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
- 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.