Legal Question in Business Law in California
Hello,
Recently, I filed a fictitious business name with the county in order to provide my Computer aided drafting services for hire from my home. In addition, I have also obtained an EIN from the IRS for tax purposes. My question is, what is the difference between filing a fictitious business name, and having an actual business license?
Thank you,
Jack
3 Answers from Attorneys
Hi Jack:
A fictitious business name is a name that you use for your business that is not your own. For instance, if you want to open a restaurant called "Jack's Restaurant". You would be "doing business as" ("dba") "Jack's Restaurant". Thus, you would file a fictitious business name statement of Jack [your last name] doing business as "Jack's Restaurant".
A business license, on the other hand, is a license that various cities, counties, etc., require in order to operate your business within their jurisdiction. So, the city in which you do business might require that you purchase a business license. You then buy the license from the city. You would probably want to put the license in the name of your dba, i.e., "Jack's Restaurant".
Note: If you want to limit your liability you may want to form a corporation or LLC (Limited Liability Company).
Let me know if you have any other questions.
Caleb
email: [email protected]
Hi Jack,
Filing a fictitious business name allows you to conduct business under a fictitious name. A fictitious name is a name other then your own name. A business license is a license that you need to acquire from the city in order to conduct business within its boundaries.
If you want to discuss business formation further, feel free to contact me or an attorney in your area.
Congrats and Goodluck on your new venture,
Jim Betinol
Partner
Withrow and Betinol Law
www.wibelaw.com
P: 424.229.2560
F: 424.258.7001
Disclaimer: This communication does not create an attorney-client relationship and such a relationship can only be formed through a signed written agreement. This communication is not legal advice and should not be solely relied upon in making your legal decisions. Any situation depends on many different facts and specific laws that require an in-depth legal consultation to evaluate the best solution for your needs.
The purpose of the fictitious business name filing is to allow anyone who has a bone to pick with a company to figure out who's running it, and from where. The purpose of selling licenses to businesses is to provide local government with a revenue stream. (A cynic's point of view).
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