What is the purpose of a fictitious business name?
In the U.S., a DBA lets the public know who the real owner of a business is. The DBA is also called a fictitious business name or assumed business name. It got its origins as a form of consumer protection , so dishonest business owners couldn’t try to avoid legal trouble by operating under a different name.
Is a fictitious business name the same as a DBA?
A DBA is simply a name statement registered with the state and not an official business formation like a corporation or an LLC. There’s no difference between a fictitious business name and a DBA . A fictitious business name is often referred to as a DBA , an “assumed business name ” or a “trade name “.
How long is a fictitious business name good for?
Do you have to file a fictitious business name?
Filing a Fictitious Business Name Statement This filing is required by law in order to connect the name of a business to the business owner. This protects consumers because it allows them to get information about the owner of a company if they have consumer problems or need to file a lawsuit.
What does a fictitious name mean?
In the case of a business owned by an individual, a “ fictitious business name ” is any name that does not include the last name (surname) of the owner, or which implies additional owners (such as “Company”, “and Company”, “and Sons”, “Associates”, etc.).
What is a fictitious?
adjective. created, taken, or assumed for the sake of concealment; not genuine; false: fictitious names. of, relating to, or consisting of fiction; imaginatively produced or set forth; created by the imagination: a fictitious hero.
What is the benefit of having a DBA?
When you are starting up, you definitely want to keep costs low and the process simple. Filing for a DBA helps you to do that. You do not have the ongoing record keeping requirements and other formalities of maintaining a corporation or LLC, or the costs associated with forming a corporation or LLC.
What is a DBA example?
Sole proprietors and general partners often choose to operate under a DBA name. For example , business owner John Smith might file the Doing Business As name “Smith Roofing.” Corporations and limited liability companies (LLCs) may register DBA names for specific lines of business.
When would you use a DBA?
Filing for a DBA allows you to do business under a name other than yours, or the name under which your business is legally registered. Sole proprietorships and general partnerships are legally required to file DBAs , but almost any business entity type could benefit from having one.
How many fictitious names can a business have?
The short answer is yes — a company can typically register more than one DBA in the same state. That food company in the previous example may decide to launch a new product line of ice cream products that doesn’t fit with their existing potato chip snacks.
Do business names expire?
If your Business Name is not renewed, it will expire and become available for anyone to register. If you don’t want to renew your registration, you don’t need to do anything.
Can you have a business without registering it?
Every great business has a great business name. If you have not registered your business with your secretary of state, you may only do business under your personal name. You may not legally use your business name without first registering it as one of the many business entities recognized by your state and the IRS.
How much does it cost to get a DBA?
Learn how to file a DBA name. DBA stands for “doing business as,” referring to the name you want the public to call your company. The filing fee for a DBA ranges from $5 to $100 depending on the state. To file for a DBA, you must fill out an application through a local, state or county agency.
Can I get an EIN for a DBA?
Apply for an EIN with the IRS assistance tool. It will guide you through questions and ask for your name, social security number, address, and your “Doing Business As” ( DBA ) name. Your nine-digit federal tax ID becomes available immediately upon verification.
Does a sole proprietor need a business name?
A sole proprietorship can operate under the name of its owner or it can do business under a fictitious name , such as Nancy’s Nail Salon. A sole proprietor need only register his or her name and secure local licenses, and the sole proprietor is ready for business .