The business world frequently uses fictional tags, also referred to as fictitious names or DBAs (Doing Business As). A DBA is a legal designation that permits a person or entity to conduct business using a name other than their legal name, whereas a fictitious name is a name other than the legal name of an individual or entity. But is using a false name or tag illegal in Ohio?
No, is the response. Utilizing a false name or tag is not a crime in Ohio. However, registering fictitious names with the state is a requirement for businesses. The Ohio Secretary of State’s office is where you register for this event. Businesses run the danger of being fined or losing the right to use their fake names if they don’t register them.
Trade name is another term for false name. A trade name is a moniker that a company uses to identify itself and set itself apart from competing companies’ products or services. Like a fake name, a trade name can be registered with the Ohio Secretary of State’s office.
While there are benefits to adopting a DBA, such as establishing a distinct business identity and safeguarding the owner’s legal name, there are also drawbacks. A DBA does not provide the business owner with any legal protection, which is one of its key drawbacks. A DBA does not offer any liability protection or tax advantages either.
Although a DBA is not required to have a separate bank account, it is advised that firms maintain distinct records for each DBA. This will lessen confusion and make it simpler to monitor each DBA’s financial performance.
An LLC may have a DBA, yes. In fact, a lot of LLCs decide to employ a DBA to give each of their businesses or product lines a unique identity. The LLC must still be registered with the Ohio Secretary of State’s office using its legal name, it is vital to remember.
In conclusion, businesses are obliged to register their fake identities with the state even though using a fictitious name or tag is not illegal in Ohio. Employing a DBA has benefits and drawbacks, which organizations should carefully consider before deciding. Last but not least, an LLC may operate under a DBA, but it must still be registered under its full legal name.