A fictitious business name (FBN), commonly referred to as a doing business as (DBA), is the name by which a company conducts business but which is not the owner’s or corporation’s legal name. It is a legal phrase that permits organizations to conduct business under a name other from the one that appears on their official papers, like their business registration or incorporation papers. Sole traders, partnerships, and corporations sometimes use FBNs to operate under a name that is more identifiable or marketable.
A fictitious name is mostly used to give businesses the ability to operate under a name other than their owners’ real identity. In order to stand out in a crowded market, this enables businesses to sell themselves under a name that is more identifiable or memorable. Additionally, it aids companies in avoiding confusion with other firms with similar names. For instance, John Smith, a solo entrepreneur, can decide to go by “Smith’s Painting Services” rather than “John Smith Painting Services.”
The best choice when it comes to raising finance is typically a corporation. Corporations can swiftly raise enormous sums of money by selling stocks in order to raise cash. This also implies that they are subject to more scrutiny and regulation than other company models. Partnerships and limited liability organizations (LLCs) are frequently the best option for small businesses. These corporate forms are simpler to run and administer than corporations because they provide greater flexibility and fewer rules.
LLCs are exempt from the DBA registration requirement in the state of Pennsylvania. However, an LLC must submit a registration statement to the state if it decides to conduct business under a name other than its legal name. The LLC’s legal name, the name it will conduct business under, and the address of its principal place of business are all listed in this registration statement. It’s crucial to understand that using a DBA does not turn an LLC into a different legal entity. It is merely a method for the LLC to operate under a different name.
In conclusion, a fictitious name’s function is to enable companies to conduct business under a name other than the legal names of their owners. Sole traders, partnerships, and corporations frequently use FBNs to sell themselves under a more identifiable or memorable name. Corporations are typically the best choice when it comes to obtaining funds, although partnerships and LLCs offer more freedom and less restriction. While LLCs are not needed to register a DBA in Pennsylvania, they are obliged to submit a registration statement if they decide to conduct business under a name other than their legal name.
Yes, you must submit a DBA (doing business as) registration in Pennsylvania if you intend to conduct business under a name different than your LLC’s legal name. A DBA enables you to utilize a fake name for your company, which is advantageous for branding and marketing.