Choosing a business name is an important step in forming your business. There is a lot of confusion over how to properly register your business name or trade name. The first thing you’ll want to do is file an LLC. If you are unsure about what you want to name your business or you are stuck between two names for your business, that is alright because if you ever want to operate business under another name, all you have to do is file a Fictitious Name Filing with the Department of State.
The first thing to understand is that a single LLC can operate several businesses. A separate LLC is not required for every business that the LLC operates. If a single business entity wants to operate multiple businesses, all the business would have to do is file a Fictitious Name Filing, also known as an Assumed Name Certificate or Doing Business As (DBA) Certificate.
This is commonly used if a single LLC is operating multiple businesses. For example, if John Smith Enterprises, LLC is both a plumber and electrician and does business under John Smith Plumbing Company and John Smith Electrical Company, John Smith should form a single LLC and file two fictitious name filings for John Smith Plumbing Company and John Smith Electrical Company in order to avoid the costs and complications of having two separate LLCs.
Another reason to file a Fictitious Name Filing is if a business is operating under a name other than it’s registered LLC name. For example, if you are operating a grocery store and the name of your LLC is John Smith Grocery Stores, LLC, but you decide to conduct business under another name such as “Superfresh,” Superfresh should be filed as a fictitious name so the public can see that Superfresh and John Smith Grocery Stores, LLC are the same entity. If the business decides to use the LLC name as its store name, then a Fictitious Name Filing would not be required. However, if the business wants to conduct business without the LLC in its name, a fictitious name filing should be submitted.
If you looking to form a business in Pennsylvania or ensure that your business is legally registered, please contact me by calling (484) 362-9286.