One of the common concerns of our clients is protecting the name of their business. If they are starting a new enterprise, they want to know how to register their business name. The first step to protect this valuable asset is to understand the fictitious business name procedure.
If your business is organized as a California corporation, a limited liability company (LLC) or a limited partnership, the name of the business is automatically registered with the Secretary of State and no other entity can use the same name. If you use only your official registered name, no fictitious business name registration is required. If you use another name other than your official name, then you must register the fictitious name. For example, if you incorporate your business as “ABC, Inc.” and then do business as the Alphabet Company, you must register the name, Alphabet Company.
If, on the other the hand, you are a sole proprietor and want to use a business name other than your own name, then you must register your “fictitious” name. For example, if you want to do business as “Legal Beagle” (“dba Legal Beagle”), you would be advised to register your fictitious name with the county clerk where you are doing business (Note: “dba” stands for “doing business as.”) By doing so, you could go to court to enforce your business contracts, if necessary, and the public would know who was responsible for Legal Beagle’s business dealings.
To register your business name, you must file a statement with the county clerk where your business is located. The statement must be published in an approved newspaper once a week for four weeks and then you must file the proof of publication with the county clerk as well. The statement is valid for five years from the date it is filed. You can do the filing or have your attorney do it.
However, it is important to realize that the fictitious business name registration does not protect or reserve the name for your exclusive use. In fact, the county clerk cannot refuse to file a fictitious name registration because the name is being used by someone else. To get extra protection against someone else using your business name, you are advised to register the name as a trademark. While it is not legally required to obtain a trademark, the trademark registration prevents any other business or competitor from using your business name without the risk of litigation. Simply filing a fictitious business name registration does not give you the same protection.
Valerie Pistole is a partner at the Sonoma law firm of Walter & Pistole. To suggest a topic or ask a question, please visit www.SonomaSun.com, go to “Contact Us” and click on “Feedback.”
