Importance of Registering a Fictitious Business Name / DBA

Do you operate your business under a different name than the company name that owns the business?  Example: Ownership entity is Om Hospitality Inc., but the business is called Sleep Inn.

If your answer is yes, then you must register your fictitious business name. DBA is always required in California when a sole proprietor, or any other business entity, wants to operate and sign legal documents under a different name. Not having a fictitious business name filed can be abused and will leave your assets vulnerable to legal liability, which your entity is intended to protect.

Additionally, we recommend you own real property through an LLC, C-Corp, or S-Corp, as opposed to your personal name. This will limit your liability and protect your personal assets and assets of other companies you own. In California, you must refile an updated statement of information for every company you own every 2 years to remain active. If you fail to do so, your company will become inactive and you open the door to further legal liability.

Moreover, if your company is owned by multiple shareholders or members, then be sure to have an operating agreement or bylaws in place. This will ensure you are protected in the event of a dispute.

If you need our assistance in registering your DBA, creating a corporation, ensuring your company is still active, or drafting bylaws please reach out to Pooja Patel at ppatel@dpaattorneys.com.