There are a number of things to consider when starting a business. An important thing to do is to choose the appropriate legal structure and register the business name. Choosing a business name is a very important step in the process. In selecting a name for your business you should use caution so that you are not infringing on names filed by other businesses or being used by another entity as a trademark, service mark or trade name. Protection of a business name is established by registering the name in each county in which the business is being conducted. There are two types of registrations at the county level: An Assumed Name consists of one or more parties. It is more binding since all parties listed must sign the documents in front of a notary public and no changes can be made without the signatures of all parties involved.A Co-Partnership consists of two or more parties, but may be dissolved or changed by the signature of any party.An Assumed Name is also referred to as DBA (doing business as). Generally this type of registration is known as a sole proprietorship which simply means that an individual owns and operates the business. There is no legal separation between the individual and the business. A person benefits from 100 percent of the profits and is personally responsible 100 percent of all debts and liabilities of the business. A Co-Partnership or general partnership registration exists when two or more persons join together in the operation and management of a business for profit. Under this arrangement each partner is liable for all debts of the business. All profits are taxed as income to the partners based on their percentage of ownership. With both of this registration there is a minimal filing fee of $10.00. The application is one page and very simple to complete. The county clerks office will return the form with a seal stamp indicating that the name has been accepted and registered in the county. Each business name is valid for 5 years, subject to renewal. The county clerk is prohibited by law from accepting a name for filing that is the same as or similar to another name already on file. (Keep in mind that spelling variations may exist.) Before registering your Assumed Name or Co-Partnership on the county level, it is a good idea to check to see if this information can be searched on the countys website if there is one. |
