Cream of the Crop 1/Cream of the Crop 1.iso/BUSINESS/SBA62.ARJ/FSBA.EXE/F207.SBE

Text File | 1992-04-30 | 4KB | 78 lines

@063 CHAP 11

           ┌──────────────────────────────────────────────┐
           │     ASSUMED OR FICTITIOUS BUSINESS NAMES     │
           └──────────────────────────────────────────────┘


Using a D.B.A. ("doing business as"), or trade name, also referred to
in some states as an assumed name or fictitious name, is not illegal,
or even unethical.  In fact, choosing a good name for your business can
sometimes aid the success of your operation significantly.  Most states
have some legal procedure for registering a trade name that will give
you some protection against another firm usurping your trade name, if
your business should become successful.  (Similar provision is often
made for state registration of trademarks, in addition to federal
trademark registration, which is valid nationwide, but often fairly
expensive to attain.)

However, in most (but not all) states, there is also a state law that
REQUIRES that a business operating under an assumed name or fictitious
name must register, usually at the county level, filing a statement as
to the true identity of the person using the assumed name.  An example
of an assumed name would be "Inter-Galactic Hydrodynamic Industries,"
which would require the owner of that business, who might be named Joe
Smith, to register, and, in some states, to also publish a fictitious
name statement in a local newspaper for a few weeks, disclosing his
use of that trade name.  If he chose to simply call his plumbing busi-
ness "Smith's Plumbing," using his own last name, most states would not
consider that a fictitious name, and no registration or publication of
a fictitious name statement would be required.

@CODE: NM
(NOTE:  @STATE has no law requiring a business to file an assumed
or fictitious name statement, unlike most other states.)

@CODE:EN
@CODE: LS
In @STATE, use of a fictitious name gets you hauled in front of
a firing squad, which is that part of the @STATE legal system
which comes immediately after any trial.

@CODE:EN
@CODE: CA
@CODE:NF

           ┌───────────────────────────────────────────────┐
           │    FICTITIOUS NAME REQUIREMENTS--CALIFORNIA   │
           └───────────────────────────────────────────────┘


California's fictitious business name law requires anyone transacting
business for profit in the state under a fictitious business name to
file and publish a fictitious business name statement.  In the case of
a sole proprietorship or partnership, a business name is considered to
be fictitious unless it contains the name of the owner or all the
general partners and does not suggest the existence of additional
owners.  Thus, for example, a name that includes "company," "Bros.,"
"& Associates" or "& Sons" will suggest the existence of additional
owners and will be considered a fictitious business name. A corporation
is not considered to be using a fictitious name unless it does business
under a name other than the exact corporate name set forth in its arti-
cles of incorporation.

Where a fictitious business name is being used, a fictitious business
name statement must be filed within 40 days with the county clerk of
the county where the firm has its principal place of business in the
state of California.  Most county clerks will provide you with a copy
of this form for free--however, there is a $10 filing fee.

Also, within 30 days after you file the statement with the county
clerk, it must be published in a newspaper of general circulation in
the same county and an affidavit showing that it was published must be
filed with the county clerk not later than 30 days after the last date
of publication of the notice.  Many legal newspapers in the state will
provide the form for filing, publish the notice and file the affidavit,
all for a single relatively modest fee.