What is Fictitious Name Statement?
The Short Answer
Fictitious Name Statement explained simply
A Fictitious Name Statement, commonly known as a DBA (Doing Business As) or an Assumed Name, is a legal registration. It tells the public who the real owner of a business is when the business operates under a name different from its legal name. For example, if John Smith owns a coffee shop called "The Daily Grind," he would file a Fictitious Name Statement to link "The Daily Grind" to John Smith. This is important for transparency and consumer protection. It also allows businesses to open bank accounts and enter into contracts under their operating name.
Real-World Example
The Local Bakery Example
Sarah wants to open a bakery. Her legal name is Sarah Johnson. She decides to call her bakery "Sweet Treats." Since "Sweet Treats" is not her legal name, she needs to file a Fictitious Name Statement. This document will register "Sweet Treats" as the name under which Sarah Johnson is doing business. This allows her to legally operate the bakery under that name, open a business bank account, and sign leases.
Why this matters
Filing a Fictitious Name Statement is crucial for legal compliance. It ensures your business can operate legally under its chosen name. It also protects consumers by making the true owner of a business publicly known. Without it, you might face legal issues, banking problems, or difficulty entering into contracts.
Make sure your Fictitious Name Statement is up-to-date. If you change your business name or ownership, you need to refile. This keeps your business legally compliant and avoids future headaches.
Make sure your Fictitious Name Statement is up-to-date. If you change your business name or ownership, you need to refile. This keeps your business legally compliant and avoids future headaches.
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