Do you know what an assumed name is? Some small businesses may decide to file for an assumed name for their small business. Once you know what an assumed name is and its benefits, you may decide to file for this official registration.
What Is An Assumed Name?
An assumed name goes by a few names depending on your state of incorporation. It may be a fictitious name, trade name or doing business as name (DBA). An assumed name has the same definition as a DBA. It is the name other than the legal entity name under which it conducts business.
Why Would I Need An Assumed Name?
Here are some common reasons why small businesses would complete assumed name registration.
- Conducting business under another name. A small business planning to do business under a name which is not the same as the business owner’s name must have an assumed name or DBA. Obtaining this registration allows business owners to accept money and conduct business under this name.
- Open a business bank account. Most financial institutions, including banks, require a certified copy of your assumed name before you can open a business bank account. After opening a business bank account, you may start collecting checks and payments under the company’s DBA.
- Discouraging competitors from using the name. Does another business in the same state want to use your assumed name? They cannot use it since you already have the name in use.
- Public marketing and advertising. Once a small business has its name registered, the company may begin publicly marketing and advertising.
What Else Should I Know About Assumed Names?
Obtaining an assumed name is not the same as filing for trademark registration.
Both an assumed name and a trademark are business names. However, an assumed name only grants the owner rights at the state level. A trademark is an original and unique logo, design, symbol or phrase. This mark helps customers identify the brand and differentiates the business from its competition.
Entrepreneurs who plan to protect their intellectual property at the federal level are advised to file for trademark protection.
Does My Business Need An Assumed Name?
MyCorporation can help you file a DBA! Pick the form of protection best for your small business. Then, let us help with the filing. Call us at 877-692-6772 or visit us at MyCorporation.com.