Choosing a distinctive name for your business is one of the first tasks you should take if you want to launch a venture in California. However, you might need to reserve that name and adhere to specific legal restrictions before you can legitimately use it. The BN 2 form, the procedure for reserving a business name in California, and some of the benefits and drawbacks of various business forms will all be covered in this article.
The California Secretary of State requires a BN 2 form for Name Reservation Requests in order to reserve a business name. Usually, a corporation, limited partnership, or limited liability company (LLC) uses this form to reserve a name. If further time is needed, the reservation can be extended for another 60 days.
In California, you must submit a BN 2 form to the Secretary of State in order to reserve a name for an LLC. The following details must be included on the form, which can be mailed or submitted online: The form must include the following information:
– The name you seek to reserve
– The type of business organization you intend to establish (LLC, company, etc.)
– The name and address of the person submitting the form
– The person’s signature
In California, must a business name be reserved? Even though it is not required by law, reserving a business name is strongly advised. You may guarantee that no one else will use a name while you are launching your firm by reserving it. If someone else starts using your preferred name, you can prevent potential legal problems and the expense of rebranding by doing this. Can a business name be registered but not used?
You can indeed register a business name even if you never use it. However, the name could be forfeited or abandoned if you do not utilize it within a specific amount of time (often one to two years). This implies that if you intend to use that name in the future, you will no longer have the legal right to do so and may need to go through the process of reserving a new name. Which is preferable, an LLC or a DBA?
Your particular needs and objectives will determine whether a DBA (Doing Business As) or LLC is better for your business. A DBA is a business name that is frequently used by sole proprietors and partnerships and is not registered as a separate legal organization. In contrast, an LLC is a distinct legal entity that offers its owners liability protection.
While establishing a DBA may be less complicated and expensive than setting up an LLC, a DBA does not offer the same amount of liability protection. An LLC can be a preferable option if you’re worried about safeguarding your private assets from corporate obligations. However, a DBA might be sufficient if you are a small business owner with a low-risk venture and do not want to cope with the extra paperwork and costs connected with an LLC.
Finally, reserving a business name in California might be an essential step in launching your company. You can make sure that your desired name is available and prevent others from using it by filing a BN 2 form and according to other legal procedures. When selecting a business form, take into account your unique requirements and objectives to decide if a DBA or LLC is best for you.