Legal Question in Business Law in California
If I start a company called daisy consulting and use a trade name (DBA) "pink pansies", do I need to file the trade name with an official agency? Can I sign contracts using the trade name (DBA) or do I need to use the underlying company name for contract?
4 Answers from Attorneys
If you start a company named daisy consulting that is not an LLC or corporation, you must register that as a fictitious business name in the county where you do business. If you then want to do business as pink pansies, you have to register that fictitious name as well before you can legally do business in either name, including signing contracts. Both names would be fictitious names for your sole proprietorship or partnership. If daisy consulting is a LLC or corporation, then the LLC or corporation must file a fictitious business name statement to legally do business, including signing contracts, as pink pansies. In that case no fictitious name filing is needed for daisy consulting because it is its own legal entity just like a person.
If you are operating as a fictitious name (i.e. DBA) you will need to file in the county or counties in which you operate your business. If the DBA is from you as an individual, then a standard filing is required. If the DBA is a "expression or division" of a corporation or LLC, then you still need to file the fictitious name with the counties. If you are operating as a corporation, it is best practice to list the DBA as a division of the corporation...questions?
By Grace...
Shawn Jackson ESQ. (707) 584-4529
Business Development Attorney
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Both "daisy consulting" and "pink pansies" would need to be registered as fictitious business names with the county clerk of the county where the headquarters is located, UNLESS one (or both) is a "real" name rather than a "fictitious" name. The name under which a corporation or a limited liability company is formed with the Secretary of State is its real name, as is the surname of an individual conducting a sole proprietorship. Anything else must be filed and published in a local newspaper in accordance with the Business and Professions Code, sections 17900 - 17930.
As a Franchise Attorney I only add the following. If it wasn't clear from the above answers, you can sign contracts using any registered DBA name. From what it appears, you will have to file two different DBA's - one for each name. Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
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