Understanding Fictitious Names in Ohio: Setting up a Dormant Company and More

What is a fictitious name in Ohio?
(1) “”””Trade name”””” means a name used in business or trade to designate the business of the user and to which the user asserts a right to exclusive use. (2) “”””Fictitious name”””” means a name used in business or trade that is fictitious and that the user has not registered or is not entitled to register as a trade name.
Read more on codes.ohio.gov

A fake name is a name that a business uses instead of its legal name; in Ohio, it is sometimes referred to as a DBA (Doing Business As). When a company wants to operate under a new name but doesn’t want to go through the process of officially changing its name, it frequently uses a fake name. A company in Ohio needs to file a fictitious name registration with the Secretary of State’s office. Is it Possible to Establish a Dormant Company in Ohio?

You can establish a dormant business in Ohio, yes. A dormant company is one that is still listed with the Ohio Secretary of State but is not currently conducting business. This can be helpful if you want to hold onto a company structure while you are not actively trading or if you want to reserve a company name for future usage.

Similarly, in Ohio, is it Legal to Form a Business and Abandon It? In Ohio, it is possible to form a business and then do nothing with it. You can keep a company structure in place even if you are not actively trading as long as you comply with the legal obligations for operating a company (such as filing yearly reports and paying taxes). How Can I Tell if My Business Name Is Already in Use in Ohio? It’s crucial to determine whether a fake name is already in use in Ohio before registering it. Searching the online database of the Ohio Secretary of State is one way to do this. You will need to choose an alternative name for your company if the one you want is taken.

What Tax Benefits Does a DBA Have in Ohio?

A DBA in Ohio allows a firm to operate under a different name without having to establish a new legal corporation, which is one of the key tax advantages of this arrangement. Businesses who want to establish a unique brand or identity but don’t want to start a new company may find this to be helpful. Additionally, a DBA can make tax reporting simpler by enabling a company to use just one tax ID number, regardless of how many names or brands it operates under.

In conclusion, businesses that want to operate under a different name without creating a new legal company must grasp how fictitious names work in Ohio. Businesses that want to create a dormant corporation or reserve a name for the future may find it advantageous to utilize a fictional name. It’s crucial to confirm whether a fictitious name is already in use before registering it and to comply with all legal criteria for upholding a corporate structure. The ability to operate under one tax ID number, regardless of the fact that a business has several names or brands, is another way that a DBA can provide tax benefits.

FAQ
What is the benefit of a DBA?

The advantage of a DBA is that it enables a firm to operate under a fictitious name that may be more memorable or marketable than the official name of the company. It also enables the company, if chosen, to conceal its legal name. A DBA might also be helpful for a company that wishes to grow or diversify its product lines without setting up a new legal entity.

Can DBA have multiple owners?

A DBA (Doing Business As) may really have more than one proprietor. For instance, a DBA may be registered in Ohio under more than one name as long as each owner is named on the registration form. It’s crucial to remember that a DBA is merely a mechanism for a company to conduct business under a name other than its legal name; it is not a legal entity. As a result, the owners of a DBA are still held personally responsible for the debts and liabilities of the company.

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