Any business name that doesn’t contain the name of its owner or sole proprietor is known as a fictitious business name (FBN) or doing business as (DBA). If you intend to conduct business under a name that’s different from your legal name, you’ll need to file a DBA. Doing so will let the public know who they’re buying from or dealing with.
Not sure if your business needs a fictitious business name? Here’s a quick guide on what these registrations are for and how to file a DBA in an efficient manner.
Do You Need a Fictitious Business Name?
In general, any sole proprietorship that doesn’t include its owner’s legal name must file a DBA. However, states can differ on what a “legal name” involves. In some states, a legal name is defined as “a person’s given name or a properly registered entity,” which may include service marks and trademarks. Other states will only accept full legal names.
In some states, you’re required to file a DBA if your business name falsely implies the involvement of more than one owner. For instance, if Arthur King names his business “Arthur King & Sons” while being a sole proprietor, they’d likely need to file a DBA statement.
Why You May Want to Use a Fictitious Business Name
Even if the law doesn’t require you to use a fictitious business name, it may still be a good idea to do so. For example, you may decide to file a DBA for privacy reasons or to create a more memorable business name than your current legal name. This is particularly relevant if your legal name is tough to remember, hard to spell, or isn’t search engine-friendly.
Of course, you may also want to file a DBA if you’re entering a new line of business that isn’t reflected in your current business name. Having a more descriptive business name comes with a variety of benefits, such as making it easier to reach your target audience.
How to File a Fictitious Business Name
If you decide to register a DBA, your first step should be to contact your county’s clerk office. Then, you’ll likely need to search their database of registered fictitious business names before filing your DBA statement. You should also do an international trademark search to ensure nobody outside of your county has trademark rights to your business name.
If your chosen business name is available, all you’ll need to do is fill out the DBA statement and submit it to your county clerk. In some states, you may also need to publish your DBA statement in an approved county newspaper before you start doing business under your new name.
In North Carolina, a DBA name may be filed on a county-wide basis or in all 100 counties state-wide if you intend to do business under that name in more than one county.