Take this Question & Answer Test to Find Out Whether You Need to  File a Business Fictitious Trade Name , Get a Tax Id Number Number, Incorporate, Form an LLC, or Register Your Business by Filing a Business License or Permit .

Business Fictitious Trade Name

A Business Fictitious Trade Name is just a certificate you are legally required to file.  It helps you open a bank account and be legal but it does not protect your personal assets.

A Corporation or LLC

A corporation protects you from civil, and financial liability as well as saves taxes for you.  

A Corporation or LLC is a Legal Person.  I.e., it is its own entity like you and me with the difference being that the corporation is a person in legal papers.  Its birth certificate is the filed corporate certificate and its birthday is the file date.  Its social security number is a federal business Tax Id Number Number.

A corporation or LLC can sue and be sued.  It has its own assets.   Though the shareholders are the owners, the shareholders are not responsible for the debts or liabilities of the corporation.

The bottom line is that since it is a separate person, even though you will be the owner, you will not personally be responsible for the debts or liabilities of the corporation.  So if a court judgment is entered against the corporation, the only assets that can be seized, are the corporate assets. 

If you have separate bank accounts, and the corporate assets are one desk, one computer and $1000 in a bank account, that is all that can be seized.  No one can go after your Home-Based or personal bank account.

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Should you file a Business Fictitious Trade Name , Incorporate, or Form an LLC

In general, if you are one person, and have a lot of personal assets, incorporate or form an llc.  You will be protected.   If you don't have a lot of assets ( such as a Home-Based and an expensive car ), you may want to just file a Business Fictitious Trade Name to start.   A corporation depending on the state you want to incorporate, or form an LLC, may cost $100 to $200 more than a Business Fictitious Trade Name but it protects your personal assets.  A Business Fictitious Trade Name does not protect you.  If you file a corporation or an LLC, you don't need a Business Fictitious Trade Name .

Note: If you incorporate, the default type of incorporation is a "C" corporation.  Then, you can change it to an "S".   So, just go ahead and incorporate or file an LLC, you don't have to worry a lot about the type of corporation or LLC.

Should you get an LLC or a Corporation?

If you are a small business just starting out, just get an LLC to start.  In most cases, you will not be wrong.  An "S" corporation is also a good choice.   You cannot go wrong either way.  The point now is to get some cheap insurance to protect your personal assets and both of the above are good choices.   Later, you can change structure or type of entity.  

Should you incorporate or form an LLC in another state?

Just keep things simple for now.  Just file in your state, and you will be alright and able to save money and have corporate protection.  It is just too complicated and it costs a lot more to incorporate in a state other than the state in which your business is located.   Also, you may have to incorporate or form an LLC in your state as well in the other state.  That will cost you double.

 

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Frequently asked questions about Business Fictitious Trade Name filing

Difference between a Business Fictitious Trade Name and a Business Fictitious Trade Name

. A Business Fictitious Trade Name , a “Business Fictitious Trade Name ” (Doing Business As), an “assumed Business Fictitious Trade Name ” or a “trade name.” are all the same.

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Corporation or an LLC Business Fictitious Trade Name

You only have to file a Business Fictitious Trade Name if corporation name is different from trade name. 

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If I am Doing Business  under my personal name, do I need to file a Business Fictitious Trade Name ?
You don't need to file a Business Fictitious Trade Name if you doing business in your own personal name. Only if the Business Fictitious Trade Name is  a name other than your personal legal name.

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How does the Business Fictitious Trade Name filing protects my business name?
Generally, the name is not protected but in some states the filing creates a rebuttable presumption that you have the rights to that  name.

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Corporations or LLCs  Doing business under a trade name

You only have to file a Business Fictitious Trade Name if corporation name is different from trade name. 


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Do I have to publish my Business Fictitious Trade Name ?

You may depending on the state you are doing business. Publication in included in your filing fee.

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When can I start my Business and open a bank account? 

You need to file your Business Fictitious Trade Name before you can start a business or open a bank account.

 
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Do you conduct a Business Fictitious Trade Name search?


Yes, in most states, we will search for Business Fictitious Trade Name availability.

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