In business law, doing business as (DBA) names, or fictitious names, can be used by businesses. These names may also be referred to as assumed names or trade names.
A fictitious name used by a business is one that is different from the actual name of the business owner or the registered name of the partnership or corporation. A DBA name is used by a business when it is operating, although it is not its legal name.
In the State of Michigan, DBAs may be helpful for a business owner who has more than one business. Each of the unique businesses can use their own unique DBA name to reflect the specific goods or services that are offered.
Different DBA names can be used by the different businesses even when they are all linked to the same entity or owner. For example, if a business named A Company owns a software company, a bookstore, and a restaurant, it can operate each of these entities under different names than A Company. If each unique business has its own name, it will allow the business to establish its own brand identity and customers will find it more easily identifiable and appealing.
A DBA name can also be used in relation to a franchise agreement. If, for example, A Company owns a franchise of a national food chain, the franchise can do business under the name of the national chain instead of under the name A Company.
If the business owner is considering the use of a fictitious name for their Michigan business, it can be very helpful to have a Michigan lawyer consultation. Getting assistance from an attorney will help ensure that the use of the fictitious name is properly handled under Michigan law and that the business is following all of the required business licensing regulations.
Difference Between a Fictitious Name and a Trade Name in Michigan
There are differences between fictitious names and trade names in Michigan. A trade name must be different from names used by other businesses.
In contrast, a fictitious name does not have to be unique. Fictitious names also do not provide users with any types of exclusive rights.
To find out more about using fictitious or DBA names in Michigan, it is important to meet with a Michigan lawyer. Having the advice of an attorney can help ensure that the owner of a business does not engage in any type of unlawful business practices.
Example of How a Fictitious Name Works
When a Michigan business owner is considering filing a fictitious or assumed name, there are some steps that must be followed. In order to better understand this issue, it may be helpful to consider an example.
Suppose that Sally owns her business as a sole proprietorship. She would like to use the name Sally’s Shoes for her business instead of her legal name. Sally’s Shoes would be considered a fictitious name because it is not her legal name, nor is it a legally registered corporate name.
In the majority of states, which includes Michigan, a business owner has to file and register a fictitious name. This is commonly handled by a county or state agency and the owner typically has to pay a fee.
Although the actual steps that a business owner must take may vary by state, there are certain steps that usually have to be completed, which are discussed below.
Step 1: Choosing a Fictitious Business Name
A fictitious name that a business uses should be easily remembered, unique, not already in use, and it should reflect the services or the goods that are being provided by the business.
Step 2: Conducting a Name Search
The owner of a business should search any name that they are considering using to make sure that the name is not already being used in the area. The business owner should also search the U.S. Patent and Trademark Office’s (USPTO) database to ensure the name they want to use is not already trademarked.
Step 3: Registering the Name
If a business owner finds out the name they want to use is not already being used, they can register it with the appropriate state or county agency. In Michigan, this is the Michigan Department of Licensing and Regulatory Affairs (LARA) for a limited partnership, corporation, or LLC.
If the business is a general partnership or sole proprietorship, the name should be filed with the county clerk. For more information on the proper place and way to register a fictitious name in Michigan, it is important to consult with a local attorney to make sure the process is completed properly.
Step 4: Paying Any Required Fees
In the State of Michigan, the fee to file a fictitious name will depend on the business structure and how the owner files. In general, the cost is around $25 for an LLC when filed online and $10 for partnerships and corporations.
If a business operates in multiple counties, a filing fee must be paid for each county. A local attorney can explain the filing fees for the business owner’s different businesses and locations.
Step 5: Publication of the Fictitious Name
Michigan does not require a fictitious name to be published in a newspaper. It does, however, have to be registered as previously discussed.
The owner will need to file a Certificate of Assumed Name when operating the business under a name that is not the same as its legal name.
Step 6: Filing Proof of Publication
Due to the fact that Michigan does not have a publication requirement, the business owner does not have to file a proof of publication.
Step 7: Using the Name Consistently
After a business’s fictitious name has been registered, it should be used consistently in all of the business’s dealings to maintain clarity and avoid any legal issues. The fictitious name of the business should be used on all advertising, the business’s online presence, and on all written documents.
Step 8: Renewing the Fictitious Name
In Michigan, a fictitious name has to be renewed every five years. The renewal has to be filed prior to the expiration date in order to extend the owner’s right to use the fictitious name for another five years.
How To Register a Fictitious Name in Michigan
To register a fictitious name in Michigan, as noted above, a corporation and an LLC must file with the Michigan Department of Licensing and Regulatory Affairs (LARA). General partnerships and sole proprietorships must file with the county clerk, as previously discussed.
For both of these methods, the business owner has to complete the Certificate of Assumed Name form and pay the required fee.
Legal Issues To Consider When Using a Fictitious Name in Michigan
There are many different legal issues that a business owner should consider when using a fictitious name in Michigan. Michigan lawyers can help their clients understand these issues and any other concerns they have in detail.
Trademark infringement is one of the most important issues to avoid when using a fictitious name. When a name is too similar to a business name that is already in use, the owner’s use of that name can be challenged under trademark laws.
Do I Need a Lawyer for Help With Fictitious Name Issues in Michigan?
It is very important to have the help of a Michigan business lawyer for any fictitious name issues in the state. Your lawyer will be able to help you through the process by handling name searches and making sure trademark infringement does not arise.
LegalMatch provides you with a no cost way to find a Michigan business attorney near you who can help you use a fictitious name for your business. All you have to do is spend around 15 minutes completing the online submission process to receive responses from prescreened and licensed Michigan business lawyers who can help.
