On Fictitious Business Names: How to Choose, Register and Protect Their Use
Selecting, Registering, and Protecting a Fictitious Business Name: A Step You Can't Afford to Skip4 min read
Whether you're setting up a small business or a worldwide corporation, there's an important step you can't afford to skip: selecting, registering, and protecting a fictitious business name. Many business owners aren't aware that they need to pick a business name for legal, ethical, and practical purposes, and that they must register this name with the federal government. What most business owners don't know, though, is that this process can be very time-consuming and complex, and it can involve a significant cost.
In this article, we'll discuss why businesses choose, register, and protect their fictitious business names, and provide detailed instructions to help you set up your company with a legal name — one that's compliant with federal and state regulations and protects your company’s name and reputation.
Why Do Businesses Need to Choose and Register Fictitious Business Names?
When you own or operate a business, it's important to have a legally recognized name for the purpose of signing contracts, buying and selling property, and collecting on accounts receivable. A fictitious business name, also known as a "Doing Business As" (DBA) name, is a name used for the conduct of trade or business that is different from the legal name of the company or its owners.
Using a fictitious business name also offers protection from personal liability, as the name replaces the business owners' personal name in legal documents and contracts. This benefits both the business owners and their customers, since the business can enter into agreements and contracts in its own name, rather than in the name of a single entity or individual. Additionally, establishing a fictitious business name can be the first step in protecting a trade name or brand name in the public domain.
In the U.S., registering a fictitious business name is known as filing for a DBA. This registration process must be followed before you can use a fictitious business name publicly in advertising or other business activities. Last but not least, filing for a DBA also ensures that all financial contacts, such as bank accounts and taxes, are conducted in the company name, not the individual name of the business owner or owners.
Fictitious Business Name Registration Process: A Step-by-Step Guide
The process of filing for a DBA name differs slightly from state to state, but the general guidelines are as follows:
Step 1: Check federal and state laws.
If you're based in New York, you'll need to meet the regulations established by the internal auditing division of New York, also known as the Comptroller’s Office.
Step 2: Search the business names database.
Before you choose a business name, you'll need to check the U.S. Patent and Trademark Office database for any trademark issues. Additionally, you'll need to search the Comptroller’s Office to check if the chosen business name is already used in New York or any other state. The Comptroller’s Office suite of databases includes fictitious names, corporation names, LLCs, etc.
Step 3: Register with the Comptroller’s Office.
If the name you’ve chosen is not already registered, the next step is to file the DBA with the Comptroller’s Office. This can be done online or in person. Be sure to include accurate information such as the name of the business, the address, and the nature of the business.
Step 4: File a DBA filing notice.
Once the name is registered, the next step is to file a DBA filing notice in the local newspaper. This is an important step as it helps protect your company from potential infringement of your business name.
Step 5: Obtain an EIN.
The next step is to obtain a federal Employer Identification Number (EIN) from the Internal Revenue Service. This is a unique 9-digit number used to identify the company.
Step 6: Structure your DBA business.
Once your DBA is in place, it's important to create the necessary structures for your business. Decide on the legal structure of your business, such as sole proprietorship, corporation, or LLC. Depending on the chosen legal structure, you'll need to register it with the respective agencies and complete the appropriate paperwork.
Step 7: Set up your business accounts.
Finally, you’ll need to set up business accounts — such as a business bank account — under the new DBA. This is an important step to ensure that all payments made to the business are properly accounted for and safeguarded.
Getting Legal Assistance with Choosing, Registering, and Protecting Fictitious Business Names
As you can see, the process of choosing, registering, and protecting a fictitious business name may involve a significant amount of time and paperwork. Business owners in New York can reduce the complexity of the process and free up valuable time by hiring experienced business lawyers from UpCounsel. UpCounsel's attorneys are at the forefront of business law and have the experience to help you with the entire process of picking and registering a business name.
From helping you choose a suitable name, filing for the DBA, and setting up business structures, UpCounsel has the legal resources and expertise to get the job done quickly and efficiently. With their help, you can rest assured that your business name is compliant with state and federal regulations and that your company's name is protected.
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