Assumed Business Names
A small business might choose to use a fictitious name for several reasons. Below are a few common ways an assumed business name could benefit your business.
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After publication, the newspaper will return an affidavit of publication which should be retained by the business. If a business decides to stop using one or more of its assumed names, it can generally make a filing to cancel its assumed name registration. Some assumed name provisions are found in the state’s business entity statutes. Others are found in the state’s laws dealing with consumer protection or unfair trade practices. When planning to use an assumed business name, it’s advisable to start the registration process as early as possible.
Failing to do so can expose both the business and owners to unpleasant consequences. If your state requires you to file for an assumed business name assumed name certificate certificate, it may not last forever. Wondering if your state requires you to file for an assumed name certificate? You can learn if DBA registration is necessary in your state and, if it is, which department you need to reach out to in order to get your fictitious name certificate. Depending on your state, an assumed name certificate may also be referred to as a DBA (doing business as) registration or a fictitious name filing. Form an LLC, corporation, or nonprofit, and get an EIN, business license, or registered agent service.
Understanding Fictitious and Assumed Name Certificates for Your Business
- Consult your state comptrollers office or state tax office for your states rules.
- Although most use the term “assumed name” others use “fictitious name”, “trade name”, or another term.
- In general, assumed name statutes apply only to business entities “doing business” under the assumed name.
- A number of states provide that the assumed name filing is effective for a certain period of years and must be renewed.
- Business credit cards can help you when your business needs access to cash right away.
Whether a business entity is “doing business” so as to be subject to the assumed name statute is a legal question that should be determined by the business entity’s counsel. Filing for an assumed name certificate allows businesses to operate under a name that differs from their legal name, providing greater flexibility for branding and marketing. It helps build recognition by creating a name that resonates with customers and fits the business’s identity. Registering an assumed name also ensures compliance with local laws, protecting the business from legal issues. It can make opening business bank accounts and signing contracts easier, as many banks and vendors require proof of registration. For businesses looking to expand services or enter new markets, an assumed name offers a simple way to create a fresh identity without forming a new legal entity.
Most states have statutory provisions governing the use of assumed names. In general, these statutes require business entities, individuals, and partnerships doing business under an assumed name to make a public filing. The document that is filed typically sets forth the assumed name, the true name, the state of formation, and the principal place of business. If your business is going to use any name other than its legal one, it’s critical to find out whether state law requires you to complete a fictitious name filing.
- It is the responsibility of the applicant to search the assumed name records in the county in which business is to be conducted to ensure no other business has the same name.
- Depending upon the state, the proper county for filing is where — your principal place of business is located your registered office is located, or your business is to be transacted.
- Beyond requiring a filing, there is little uniformity among the assumed name statutes.
- An assumed name refers to any name a business operates under that is different from its legal name, while a DBA is the formal registration of that name.
An Assumed Name Certificate formalizes the registration of a business’s DBA (Doing Business As) name. It’s a legal document that declares the public use of a name other than the business’s legally registered name. This certificate is crucial for compliance and transparency, allowing customers and regulators to identify the true ownership of a business operating under a different name.
What Is an Assumed Name Certificate?
It’s commonly used by sole proprietors, partnerships, and corporations looking to rebrand or expand. Both terms serve the same purpose legally, but the terminology may vary depending on the state or local requirements. If your business operates as a corporation, limited liability company (LLC), or limited partnership (LP), your business’s legal name is the one used on the formation document. The business entity laws generally require the foreign entity’s name to be distinguishable upon the records of the Secretary of State from the names of other domestic or foreign business entities.
An assumed name allows a business to operate under a name different from its legally registered name. This is especially useful for sole proprietors and partnerships that want to do business under a more marketable name without forming a separate corporation or LLC. Tarrant County provides the information contained in this website as a public service. However, in any case where legal reliance on information contained in these pages is required, the official records of Tarrant County should be consulted.
Business Forms & Fees
Tarrant County is not responsible for the content of, nor endorses any site which has a link from the Tarrant County website. You may obtain more information about assumed names from the Texas Business and Commerce Code. For assumed name filing FAQ’s, please refer to the Texas Secretary of State. If you do, then you will most likely need to file separate documents for each name you are using. In many states, your filing responsibilities don’t end with the initial registration.
Assumed Names
Sales taxes (if your business is required to collect sales tax) are filed separately from income taxes and are paid to the state and or local taxing authorities. Consult your state comptrollers office or state tax office for your states rules. Unincorporated assumed name applications may be partially completed and saved online, but applicants must appear in person to sign the application and pay the required fee. The process can be completed at the downtown location or at a Tarrant County subcourthouse location. Any business that uses an assumed name should take steps to comply with the assumed name statutes in the state(s) in which it does business.
How Long Is a Fictitious Business Name Valid?
When a general partnership or sole proprietorship does business under an assumed name, that means it is using a name other than that of its partners or sole proprietor. There are also states that require a filing with the state office, followed by a recording of the document with the county. Some states require publication in a local newspaper of the intention to register and do business under an assumed name.
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Failure to comply with state or local requirements can lead to loss of credibility with vendors, clients, and banks. Proper registration protects the business’s legal standing and ensures compliance, reducing the risk of litigation or operational disruptions. Not sure whether you should file for an assumed business name or register for a new, separate business entity with your state? Talk to a trustworthy business attorney for legal advice on your personal situation.
Here are some common reasons why small businesses would complete assumed name registration. Registering an assumed name is also a strategic tool for companies looking to branch into new markets or product lines without altering their formal business structure. This flexibility makes assumed names a popular choice among entrepreneurs looking to expand their reach and adapt to diverse business environments. It’s important to realize that doing business for purposes of an assumed name filing may be determined differently from doing business for other purposes, such as having to qualify in a different state or for tax purposes. Depending on the jurisdiction you’re doing business in, an assumed name may also be referred to as a DBA (“doing business as”), fictitious name, or trade name. Does your business use a name that doesn’t match the one you use when you file your tax returns?