A couple of issues to be aware of. Thus, if it is really unlikely that the other business's customers are going to be confused because you have the same name, then there really isn't a trademark issue. One business may attract the customers of another simply because the consumer cannot tell the difference between the two. There are two main ways to accomplish this. If, however, two businesses have the same name, serve the same geographic demographic, and operate in the same industry, one of the businesses will have to change their name and apply for a new EIN. Whether that LLC has any DBAs (Fictitious Names) is up to you. Businesses Required to Have Separate Bank . A DBA, or "doing business as," is a fictitious name under which a business can choose to operate. The DBA laws, which can be found in the California Business and Professions Code, are designed to help ensure that customers doing business with a California company can identify the corporation behind the name, as that corporation is the legal entity that is ultimately responsible, regardless of the DBA it may be using. This is a name that is separate from the legal business name assigned by the IRS but is still attached to the legal business name as issued by the state, county or city. You will not be able to sell member shares in the LLC, stock in the Corporation, or partnership rights in the Partnership for one of the lines of business which operates . If you're uncertain about whether or not you need to file a DBA, get in touch with your local (town or county) clerk's office and ask them if it's necessary. This could carry penalties of up to 60 days in jail, a fine of up to $500, or both. It is not supposed to happen but since dba 's are sometimes filed in a different place than the corporations and llc's it is possible for this to occur. Neither business using the same name has a federally registered trademark. Instead, it just means that the same company is operating under the new name. Yes, you can have multiple businesses under one LLC. The entity was required to use "LLC" as part of it's na. Governed by state law, some states will not allow two businesses to use the same DBA. The fictitious name certificate does not create a separate business entity so the line of business operating under a DBA is part of the business entity which filed for the DBA. The reasoning behind this is that having two businesses operating with the same name or other identifying features can cause consumer confusion. Our property management collects the rent, takes our fee, pays the bills, and distributes any remaining cash to the owners based on their ownership percentages. And if you discover that someone else is operating a business using your business name, you may or may . (Ie can real estate brokerage general partnership share the same DBA as an LLC property management company or a sole prop. Your County recorder may not allow more than 1 person or company to use the same DBA because then consumers won't know which DBA is which when they look them up. A DBA (also referred to as a Doing Business As, Assumed Name, or Fictitious Name) will need to be applied for each different name being used by a business. 1. Governed by state law, some states will not allow two businesses to use the same DBA. For instance, Mary Moore operates as a sole proprietor graphic designer, and she decides to do business as: "Mary Moore Designs.". Get Your Sole Proprietor EIN Multiple DBAs There are several ways to "register" a company name. Actually, it's probably not the same name as your DBA, even though you contend that it is. Your DBA on the other hand, registered with your state, can be Beachside Cafe. Also since business names are registered on a state-by-state basis, the fact that a company in another state or country has the same name is usually not a cause for concern. You have a DBA. If, however, two businesses have the same name, serve the same geographic demographic, and operate in the same industry, one of the businesses will have to change their name and apply for a new EIN. Businesses Required to Have Separate Bank . Certain states, counties . The party who filed the dba first would have the rights to use it and can seek a name change from the other party. Filing an assumed name certificate/DBA simply establishes a link between the DBA/assumed name and the person (sole proprietorship) or business entity (LLC or Inc) that uses the DBA/assumed name. One way to structure your multiple business ventures is to form a single company and register as many fictitious names (also called "Doing Business As" names, or DBAs . The information below provides answers to frequently asked questions about changing your EIN. One of the factors courts look at to determine likelihood of customer confusion is whether the two businesses are in the same industry. They purpose would be to market together (have the same website, share advertising), but to keep liability separate. Put DBAs under one corporation/LLC. There are several ways to "register" a company name. Can two different business entities share the same DBA? property management company)? Sharing a name with another company can also make it difficult to register trademarks for your own business. In fact, in some states, several businesses can actually use the same name. Your County recorder may not allow more than 1 person or company to use the same DBA because then consumers won't know which DBA is which when they look them up. Likewise, if there is the same business name in different countries, they can both share the name. We'll examine each here. Registration of DBAs If you and another business have the same or similar name, but you are both not operating in the same industry or field, you may have a case for no consumer confusion, and there may be no issue. Instead, it just means that the same company is operating under the new name. Keeping with the . Answer (1 of 4): Yes, it is perfectly acceptable for someone to register an entity (be it an LLC, LLP, or corporation) with the same name as your DBA. Any business actions like selling stocks or selling the business cannot be conducted in the DBA name. 0 found this answer helpful | 0 lawyers agree Helpful If you fail to file a DBA in Florida, you can be charged with a second-degree misdemeanor. A DBA is an operating name that a company uses to conduct business, which is a separate and distinct name from the formal legal name of the company. However, there could be intellectual property issues (namely, trademark) in future when two companies have the same name. For most people who use a DBA, it means that they are operating as a sole proprietor. Filing and doing business under a DBA/assumed name is not the same as incorporating or forming a business like an LLC. The party who filed the dba first would have the rights to use it and can seek a name change from the other party. A general partnership is a business entity made up of at least two people. However, if your business is using a company name that's the same as another incorporated company, there could be grounds for a legal dispute, and you may not be able to legally use the business name. A DBA does not mean that a new business is formed. Generally, businesses need a new EIN when their ownership or structure has changed. For example, your legal name is John David Smith, and that is the legal business name assigned to the EIN. These types of deals must include the legal name of the business. Examples. One house, many rooms. Actually, it's probably not the same name as your DBA, even though you contend that it is. Meaning, you don't have to file a DBA to run multiple businesses under one LLC, but you . While a trademark grants you the exclusive right to use a particular name for your business, a DBA simply allows you to operate under that name. Governed by state law, some states will not allow two businesses to use the same DBA. That's a fictitious business name for you to do business under. In this case, it is usually the business which had the name first that gets to keep it. A major legal implication of having multiple businesses operate under one entity is that if one business is sued, the assets of both businesses are at risk. Thus, if it is really unlikely that the other business's customers are going to be confused because you have the same name, then there really isn't a trademark issue. The entity was required to use "LLC" as part of it's na. A "doing business name" or "DBA" is an assumed name that a company uses, which differs from its legal name. A DBA (also referred to as a Doing Business As, Assumed Name, or Fictitious Name) will need to be applied for each different name being used by a business. This is why LLCs need to submit a DBA application. Tenant. This e-mail may contain confidential or privileged information. Therefore, to do business by any other name, you would need to have a DBA under a sole proprietorship. In practice, what this means is that two businesses may very well have the same name. Yes, a DBA can have multiple owners as long as the business is not structured as a sole proprietorship. A DBA is an operating name that a company uses to conduct business, which is a separate and distinct name from the formal legal name of the company. Although changing the name of your business does not require you to obtain a new EIN, you may wish to visit the Business Name Change page to find out what actions are required if you change the name of your business. Another common option is to file one LLC or corporation, and then set up multiple DBAs (Doing Business As) for each of the other ventures. One of the factors courts look at to determine likelihood of customer confusion is whether the two businesses are in the same industry. Yes, you can have multiple businesses under one LLC. Any business actions like selling stocks or selling the business cannot be conducted in the DBA name. Answer (1 of 4): In our company we sometimes have 2 LLCs or partnerships as Tenants In Common, each as part owners of a property. That's a fictitious business name for you to do business under. Imagine that two businesses that operate online both launched their websites in the same month and year and are using the same or a similar name. The Short Answer: Maybe By choosing the same name as another business, you risk being forced to change your name or even pay monetary damages to the other company. So, your company can have the same name as another company, and vice versa, with no claims of trademark infringement. You can run two or more businesses under one LLC by either: running all the business activities under one LLC name, or registering DBAs ("doing business as"), also known as Fictitious Names. Small businesses can utilize the same structures (and gain the same benefits). While a DBA costs around $50 in most states, filing for a trademark costs several hundred dollars and is a lengthy process. The three letters "DBA" stand for "Doing Business As.". Basically, the business owner and the business are one and the same entity, which means they have the same name, too — unless they file a DBA. Filing a DBA does not legally protect the name, but it may deter other businesses from using the name. Generally, all businesses operating in Canada must comply with federal, provincial, and municipal laws regarding business names. These types of deals must include the legal name of the business. Please advise. A general partnership is not required to use a DBA and always has the option of using its legal name, which is a combination of the last names of all of the individuals in . You have a DBA. What most companies do in this situation is use two DBA's or two company names that are nearly identical but not entirely identical. As a sole proprietor, your legal name is the legal name of your business. A DBA allows you to operate your business under a different name than your own name (in the case of a sole proprietorship) or the registered name of your business. They could also advertise under the "XYZ Group of Companies" as long as they do their actual business under their individual DBA's or corporate names. Generally, two businesses may have the same or similar name if they don't participate in delivering the same types of products or services or serve the same channel of commerce. Generally, a sole proprietorship and a limited liability company may be able to conduct business under the same name if each registers that name as a fictitious/assumed business name (colloquially, a "DBA" for "doing business as") with the appropriate governmental authority. DBA names are also commonly known as "trade names," "assumed names," or "fictitious names.". You can apply for a DBA when you first register your new business, or you can apply for a DBA later on if you decide to make changes to your business. Therefore, to do business by any other name, you would need to have a DBA under a sole proprietorship. For businesses operating in different states, this may or may not be an issue. The three letters "DBA" stand for "Doing Business As.". Generally, all businesses operating in Canada must comply with federal, provincial, and municipal laws regarding business names. Whether that LLC has any DBAs (Fictitious Names) is up to you. In practice, what this means is that two businesses may very well have the same name. Registration of a DBA allows consumers to search public records and determine which individual or business is behind a fictitious name. Thanks! Answered on 1/31/11, 3:38 pm Mark as helpful Although most businesses register a single DBA, there are instances where multiple DBAs may be the most beneficial option. A DBA does not mean that a new business is formed. Certain states, counties . 2. Updated on October 28, 2019. You can run two or more businesses under one LLC by either: registering DBAs ("doing business as"), also known as Fictitious Names. DBA names are also commonly known as "trade names," "assumed names," or "fictitious names.". A major legal implication of having multiple businesses operate under one entity is that if one business is sued, the assets of both businesses are at risk. Posted on Jun 12, 2018 It is not supposed to happen but since dba 's are sometimes filed in a different place than the corporations and llc's it is possible for this to occur. Answer (1 of 4): Yes, it is perfectly acceptable for someone to register an entity (be it an LLC, LLP, or corporation) with the same name as your DBA. The claim to a business name has a lot to do with consumer confusion, and whether having two similar or same names will be a sore point for consumers.
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