Finding and registering a business name is one of the most important steps you will take when starting your own business. Usually, it's the first step you take. Businesses that use a name other than the owner’s must register the fictitious name with the county as required by the Trade Name Registration Act. This does not apply to corporations doing business under their corporate name or to those practicing any profession under a partnership name. An individual name is said to be fictitious if it does not include the surname.

EXAMPLE: If an individuals name is Mary Smith and the name being registered is Mary Jones, then the name is fictitious. In addition, if the name being registered is Mary Smith’s Café, then the name becomes fictitious because although the name includes surname of the individual, the real name is only Mary Smith not Mary Smith’s Café. If anything is added to the real name, the name becomes fictitious. If the name suggests the existence of additional owners, then the name is fictitious. For instance: Mary Smith and Associates would be considered a fictitious name.

The first step after choosing a name is to see if the name is available. A search of the proposed name must be made at the County Clerk / Recorder’s Office. The office will usually have a computer database that contains all fictitious names that are registered within the state. In addition, most states have a website site for their Secretary of State. The Secretary of State websites often have a database online that allows consumers to search for fictitious names.

The actual requirements vary from state to state. However, in general the following must be done: (1) check the availability of the proposed fictitious name, (2) register the name with the Tax Collector, (3) submit a fictitious name statement to the County Clerk / Recorder’s Office with the appropriate fees and proof of tax registration, and (4) publish the fictitious business in a court approved newspaper, usually within 30 days after filing the statement. 

Yes, but not through the filing of a fictitious business name. The protection of a fictitious business name is limited to the County in which it was filed. For protection of a business name in multiple counties or states, the name must be trademarked.

The first thing that you must decide is whether you want to take the idea and actually turn it into a business. There are a number of factors that you need to consider before acting on your idea. The business you choose should match both your goals and your abilities. This will require an honest assessment of your skills, goals, and determination. If you are lacking in any of these areas you should seriously consider whether or not starting a business is a wise choice. This general checklist will help you decide on a business that can be successful for you. Ask yourself these questions before launching yourself into a new business venture:

Is this the kind of work I really enjoy? Starting a business requires a tremendous amount of time. It is important to be involved in a business that you enjoy. Many people transform their hobbies into a business. This transformation is usually successful because people will naturally work hard at something that they enjoy.

Do I have the required technical expertise? Before you start a business, it is crucial that you possess knowledge within the area of business that you plan to start. Starting a business based upon a topic that you know little or nothing about is not wise. A certain degree of expertise is required because it will enable you to make wise business decisions, accurately assess the market, and relate to your projected customers.

Will this business provide me with the income that I desire? Your financial goals should match the business that you choose. Many areas of business have trade associations that can provide you with realistic financial projections. You can also talk to other business owners within the same or similar businesses to determine the type of income that you can reasonable expect. Once you have a general projection of the possible financial gains, you will be in good position to determine if the business matches your financial goals.

Is there a market for my product? You may think that a can opener that doubles as a blow dryer is a fantastic idea, your mother may even agree with you. However, if a market does not exist for your product, your business will not be successful. You must determine whether there is both a need and a market for your product. Your local yellow pages can provide you with the names of marketing companies that can help you determine whether or not a market exists for your product.

If you can answer the above questions in the positive, then you may be ready to act upon your new idea for a business.

No. If your corporation is to do business under a name other than the exact corporate name as stated in your articles of incorporation, you must file for a fictitious name within the county of the corporation’s principle place of business. Usually your business name and your company name will be the same. If your company is incorporated, then the name of your corporation will be the name of your business. If you have a corporate name that is different than the business name that you want to use, then you will have to separately register your business name if it is not incorporated or the name is different than your surname.

For example, your articles of incorporation list your company name as "Wilson’s Widgets, Inc.," and you plan to do business as "W.W. Inc." In this example, you need to file for a fictitious name.

The best way to find out about local zoning laws is to call the your local office of zoning. The actual name may vary from state to state. A good place to start is by calling your local county clerk / recorder’s office. This office can put you in contact with the local zoning department. It is important to check the zoning designation of the area in which you plan to open your business. A failure to check may result in the future inability to operate your business.

A corporation is a legal entity that is created under the laws of your state by filing articles of incorporation with the Secretary of State. As a legal entity, the corporation must file income taxes. A corporation may own property, enter into lawsuits, bind itself in contracts, and assume debt. A board of directors manages a corporation. The directors are elected by the shareholders. The articles of incorporation or the bylaws determine the number of directors. The directors must usually elect the president and the secretary. The directors must also adopt the bylaws. The board may elect or appoint other officers. The bylaws may prescribe how other officers are selected. In the event that a corporation is sued, the papers must be served upon a registered agent of the corporation. The registered agent can be either a person or the corporation itself.

A limited liability company (LLC) is an unincorporated association having one or more members. Managers or members can manage the LLC. The management structure of a LLC usually must be stated when the Articles are filed with the Secretary of State. Members of a LLC are like shareholders of a corporation. Managers of a LLC are similar to a corporation’s board of directors. Under a member / management structure, all owners of the LLC are responsible for managing the company. Under a manager-based structure, one or more owners are designated to take responsibility for managing the LLC. Under this system, only the managers have the authority to make decisions for the LLC. A LLC does not have to adhere to the strict regulations that a corporation must. Like a corporation, members of a LLC are not personally liable for the debts or lawsuits of the LLC.

The difference between the two business forms centers around tax consequences. Corporate profits of a C corporation are taxed at the entity level, by corporate income tax, and then taxed again at the individual level when paid out as dividends to shareholders. In contrast, a Subchapter S corporation treats profits or losses by the corporation as ordinary income or loss to the individual stockholder. A full discussion of the Subchapter S corporation can be found in Internal Revenue Service Publication Number 589. Internal Revenue Code Section 1244 allows an individual to treat losses on the stock of a "small business corporation" as deductions against ordinary income. IRS Publications Number 542, 544, and 550 have sections discussing this regulation.

The filing fees for incorporation vary from state to state. The range is anywhere from $30.00 to $200.00. In addition to the initial fee, yearly fees are required to maintain and comply with the reporting requirements. These additional fees usually range from $100.00 to $400.00.

Once again it varies. In most states the actual filing fees for the two business forms are about the same. To find the actual fees for filing in your state, contract your Secretary of State.

There are many sources of information for helping you create a LLC agreements. Many books and software include operating agreements that you can simply fill in by answering questions. Local law libraries are another source of information. Every law library has a section containing "Practice Guides." The guide for corporations will provide many templates for creating operating agreements. Lastly, you can always seek the advice of an attorney who practices business or corporate law. Operating agreements are rather standard for an attorney. An attorney will likely be able to prepare one for you quickly while charging you a fair rate.

Generally, a LLC files the same federal tax form as a partnership: form 1065. If you are a single-owner LLC, the IRS treats your LLC as a sole proprietorship. You report profits on a Schedule C as part of your individual 1040 tax return. You also pay self-employment taxes on LLC net income just as you would with any self-employment business. Individual members may also be liable for self-employment Social Security taxes filed on Schedule SE of form 1040. A LLC may also be required to make estimated income tax payments. In most cases, if you expect to owe $1000 in federal taxes for the year after subtracting any withholding and tax credits, you must file a form 1040-ES for each quarter with the IRS. Lastly, the IRS has determined that an LLC meeting certain requirements may be taxed as a "pass through" entity like a partnership or S corporation. This means that the LLC's profits and losses flow through to the LLC members. Many of the restrictions placed on S corporations, such as limits as to the number of shareholders, do not exist for an LLC. The state income tax treatment of LLC profits is the same in most states. Before forming an LLC, you should go online to your state's Revenue or Tax Department website to determine the applicable tax regulations.

One advantage of an LLC over a C corporation is the difference in taxation. The most apparent advantage that an LLC has over a C corporation is the pass-through aspect of taxable income and loss to its members. LLCs eliminate the double taxation suffered by corporations. C corporations are taxed once on earnings at the corporate level and again on dividends and appreciated property at the shareholder level. Additionally, LLCs can specially allocate items of income, gain, loss, deductions, and distributions pursuant to the operating agreement. Lastly, unlike C corporations, LLCs are not subject to accumulated earning taxes and personal holding company taxes that may be imposed on C corporations.

In addition to the tax benefits, LLCs have far less cumbersome record-keeping requirements than corporations. The members of a LLC are also protected from personal liability for the acts of the LLC. The relaxed tax regulations along with the limited liability create a favorable business form for many.