Starting a business is no small feat, especially when it comes to legal requirements and compliance. One of the most common legal considerations when starting a business is choosing a name. But what if you want to operate under a name that is different from your legal name or your business entity name? This is where fictitious names and trade names come into play. In this article, we will explore the differences between the two and answer some related questions.
A fictitious name, also known as a “doing business as” (DBA) name, is a name that a business uses for conducting its operations, advertising, and marketing purposes. It is often used by sole proprietors or partnerships who want to operate under a name other than their legal name. For example, if John Smith wants to operate his landscaping business under the name “Green Gardens,” he would need to register a fictitious name.
In California, businesses must register their fictitious name with the county clerk’s office where their business is located. This registration is required to ensure that the public can easily identify the owner of the business and to prevent fraud or misrepresentation. Fictitious names must be renewed every five years in California.
A trade name, on the other hand, is a name that a business uses to identify itself to the public and its customers. It is often used by corporations or limited liability companies (LLCs) who want to operate under a name other than their legal name. For example, if XYZ Corporation wants to operate its retail stores under the name “Bright Ideas,” it would need to register a trade name.
In California, trade names must be registered with the Secretary of State’s office. This registration is required to ensure that the public can easily identify the owner of the business and to prevent confusion or misrepresentation. Trade names do not expire as long as the business entity remains active and in good standing.
Can two businesses have the same DBA name in California? No, two businesses cannot have the same DBA name in California. The purpose of registering a DBA name is to ensure that the public can easily identify the owner of the business. If two businesses have the same name, it could lead to confusion and misrepresentation.
Can an LLC have a DBA? Yes, an LLC can have a DBA. Many LLCs choose to operate under a different name than their legal name for branding or marketing purposes. However, the LLC must register the DBA name with the county clerk’s office where their business is located.
Does a sole proprietor need a DBA in California? Yes, a sole proprietor must register a DBA name if they want to operate their business under a name other than their legal name. This registration is required to ensure that the public can easily identify the owner of the business.
It depends on the specific circumstances of your website. If your website is operating under your own personal name, then you may not need a DBA (Doing Business As) registration. However, if you are using a name for your website other than your own personal name, then you may need to register a DBA or trade name to legally operate under that name. It’s important to research and understand the specific laws and regulations in your state or country regarding DBA and trade name registrations.