FICTITIOUS BUSINESS NAME
Advantages of a Fictitious Business Name (DBA)
Filing a Fictitious Business Name (also called “Doing Business As” or DBA) is an affordable and simple way for entrepreneurs to start a new company and gain name recognition without the expense of forming a corporation or LLC. If you’re ready to start your own business and want to keep costs to a minimum, or if you’re an existing business owner ready to explore new opportunities, registering a DBA statement may be a good choice for you.
Submitting a DBA statement to the county where you plan to operate gives you the ability to open a bank account in your business’s name and to get up and running in no time. You can also send out invoices, collect money, advertise, and even get listed in the phone book and online under your new name.
Alternatives to a Fictitious Business Name- The primary disadvantage to using a fictitious business name rather than forming a corporation or LLC is that you will have sole proprietorship and liability for your business. This means that if your business accumulates substantial debt, goes bankrupt, or is the target of a lawsuit, you will have none of the liability protection enjoyed by corporations and your personal assets may be in jeopardy. Once your new venture takes off and begins earning a profit, you may want to consider taking the next step and form a corporation or LLC.
Keep in mind that California law requires anyone filing a DBA statement to also publish a notice of the fictitious business name in area newspapers for a length of time. This public announcement is designed to prevent fraud and to maintain a public record of your intent to do business. You will also need to submit your business’s name to the County Recorder.
How to File a Fictitious Business Name Using the Document People
We can assist you with each part of your DBA statement and will file all the necessary paperwork to your county so you can concentrate on starting your new business.
This service is offered for a standard flat fee. Start your business today!
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