An assumed name, fictitious name of DBA (doing business as) is also known as ‘trading’ in the UK and it helps you to do business legally as a certain name with minimal cost, and without the need to create a new business entity. You may at the same time accept payments, advertise and present yourself as that name. if you can present your business under that name, which is other than your appropriate legal name, it can be taken as fraud. The good news is that you can file for an assumed name in an inexpensive and easy manner.
What can You Do with an Assumed Name?
With the help of a DBA, you can use a business name other than your personal name since you are the sole proprietor. In some areas, you may use a part of your name or your full name along with a product or service description without filing the assumed name, such as Pamela Tomkin Architecture Design or P Washington Designers. The exact rules may vary between states and countries within the US and hence you should check with your local business regulatory authority about your area. However, if more people are involved such as The Rupert Group or Miralla and Sons, or if you are using your first name such as Joe’s Decorators, you need to file an assumed name.
The DBA also allows you to use a typical business name without creating a formal legal entity such as LLC, partnership or corporation. You might also open a business checking account and receive multiple phone listings for the name. For the sole proprietors, the method is least expensive for doing business legally under a business name.
The DBA allows a single legal entity such as LLC or a corporation to play multiple businesses without creating a fresh legal entity for every individual business. in case you are planning to launch several web sites or a chain of restaurants, you can establish a corporation having a generic name like TAC Online Businesses Inc. or Nearing Restaurants LLC before filing an assumed name for every web site or restaurant. With significant expenses involved in filing and maintaining a corporation, it allows you to curb costs while giving you the leverage in expanding your business.
How to Proceed with DBA
In a few US states, you can register with your assumed name with a state agency or the Secretary of State, although in most of the cases, registration is something which is handled in a national level. Each country may have varying forms and costs of name registration. The process is generally simple: you perform a search through the database to ensure that the name is not already used. After that, you need to submit a form and with the appropriate filing fee, get started.
A few states also require you to issue a public notice in your local newspaper and submit an affidavit showing that the publication requirement has been fulfilled. You may get in touch with the county clerk’s office for finding the local fees and processes.
The laws vary to a great extent on the basis of the country you are in. In the UK, governmental filing processes are not required for using assumed names, although the process is strictly controlled by the Business Names Act of 1985, which mentions where and how you need to disclose your business ownership. With a private sector initiative, the National Business Register tracks the business names and prevents duplication. For that, you need to check with the local authorities.
Other than your interests in filing an assumed name remember that the purpose of disclosing actual business ownership is to enhance consumer protection. You cannot do business with a company where there is a problem, or which goes to file suit without you finding out about the actual owner. For that you need a private investigator.
By using fictitious names appropriately, you can create a powerful branding tool at less cost. You can hence choose a great business name and use it at all opportunities.
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