What Is a Fictitious Business Name
A fictitious business name is a commercial name that is "fictitious" or "made-up," but that is used in the ordinary course of business instead of the name of the actual owner of the business. An example fictitious business name is "John’s Deli," which has no connection whatsoever to the legal name of the owner or owners of the deli. For purposes of this article we’ll use the common and singular form instead of plural – it refers to fictitious business names for the benefit of any number of "John’s Deli," fictitiously speaking, of course.
As San Francisco is a city where business opportunities abound, it is likely that you will require a fictitious business name at some point.
In San Francisco, the Fictitious Business Name Statement Statute is found at California Business & Professions Code § 17900 et seq. A fictitious business name is sometimes called a trade name , assumed name or assumed business name. Registering a fictitious business name is generally required in California if the business operating the fictitious business name is:
• Owned by one or more natural persons (instead of a corporation or other business organization) and;
• The business name for the business is not the actual name of the natural person (or persons) who owns it.
In San Francisco, fictitious business names are filed with the San Francisco Office of the County Clerk, a division of the San Francisco Department of Elections. The registration form is known as an "Application to File Fictitious Business Name Statement." This form can be obtained from the San Francisco Office of the County Clerk or online from its website.
California law requires fictitious business names to be registered simply based on the fact that the business does not operate under its legal name. However, its use permits businesses to open bank accounts, secure financing, enter into contracts with customers, suppliers and others, and advertise its business name.
The Purpose of a Fictitious Business Name Search
For business entrepreneurs and owners, finding the right fictitious business name is key to branding and marketing efforts. Moreover, a name that is too similar to an existing one can result in confusion and competition for customers, as consumers may attempt to search for your business but unknowingly click on a competitor’s. A fictitious business name search can help you avoid potential legal disputes.
A fictitious business name search allows you to ascertain whether another business already holds the name you’re interested in. Further, many states have laws that make it illegal to register or adopt a name that closely resembles another business’s fictitious name in the same field. In addition to ensuring availability, the fictitious business name search is helpful for other reasons as well, such as:
A Step-By-Step Guide to Fictitious Business Name Search in San Francisco
Performing a fictitious business name search in San Francisco requires accessing the San Francisco County Clerk’s office.
Obtaining the Fictitious Name Statement:
Best practice is to obtain a copy of the filed Fictitious Business Name Statement for the fictitious business name you are searching for. You can request a copy of the statement one of two ways; 1) In-person request at the San Francisco County Clerk’s office, or 2) Request by mail. The request is subject to payment of a $10.00 fee plus $0.50 per page. You may be requested to send a self-addressed, stamped envelope with your request, so as to facilitate return of your request.
In-Person Request:
You may request to search for the Fictitious Business Name Statement (FBN) at the San Francisco County Clerk’s office located at 1 Dr. Carlton B. Goodlett Place, Room 168, San Francisco, CA 94102. A FBN search request form can either be obtained online or at the office. The search fee for a FBN is $10.00. If this request is also to obtain copies, there is an additional cost of $0.50 per page.
Request for Search by Mail:
To perform this step by mail, you must first obtain and complete the FBN Search Request Form online or by requesting a hard copy form at the office. The fee for this request is $10.00, and it must be paid by check or money order payable to the San Francisco Department of Elections.
Fill out the FBN request form by including the name for which the search will be performed & the year it was filed. Include the date you require it by, along with your name, return address, phone number, & email.
Enclosing a self-addressed, stamped envelope with your request will help the San Francisco County Clerk’s office to return all copies promptly.
The results of your search will be sent back to you/correspondent by U.S. mail.
There are options to view the statement on-line or in person. The San Francisco County Clerk’s office strongly recommends using the online option if available to avoid processing delays and to have immediate access to the FBN on the spot.
Keys to Selecting a Unique Fictitious Business Name
When choosing a fictitious business name (FBN), you can save yourself much wasted time and trouble by coming up with a name that is unique to the Company or your personal name. If you pick a unique name, you probably will not have a difficult time finding which fictitious business name to search on, or finding other businesses that you think could possibly be similar enough that you should perform a search. Think of it this way: the uniqueness of the name is your first line of defense in finding out if someone else already has a fictitious business name that is similar or identical to the one that you want to use.
Also, be as simple as possible with your options. You might have your heart set on the name of a movie character, like "Rocket Raccoon," but that may not be available to use until the character dies , as the name is or may be trademarked. And while you might be able to trade on that name without issues for a while, you could end up being sued by the owner of the character – likely the studio that made the movies – and ultimately paying the damages and legal costs.
Does "Rocket Raccoon Atonement" work? Probably not. While it might be unique enough to search on and find out if anyone else has it, it requires the input of three individuals: you, the movie’s studio, and the character itself. Also having the name "Atonement" in there might be too close to "Satisfaction" or "The Satisfactions" for comfort. A guarantee is hard to come by, but a well-researched list of possibilities is going to come much closer than a short one that only includes the names in your head that you’re trying to make work.
Mistakes to Avoid
Common mistakes to avoid when performing a fictitious business name search and registration in San Francisco are as follows:
- Start your search without appealing to the database of existing names. In some instances, business owners in San Francisco will even pay the business name search company to search for existing business names only to learn later that they could have done it for free online. Entrepreneurs should always search for existing business names for free before proceeding with a fictitious business name registration.
- Create a name for your business that is too similar to the names of existing businesses. These include businesses that have similar names, are in the same industry or even operate in the same geographical location. The web search tool for San Francisco business names will show the names of all registered businesses, online and in the neighboring counties of Marin, San Mateo, Santa Clara, Alameda and Solano.
- Create a name that is too long, such as an elaborate phrase, or that is spelled incorrectly. Business owners often try to beat the system by using a word that is part of an acronym, such as an obscure set of initials. This is not legal and will not be protected from trademark infringement. Spending the time to perform your own fictitious business name search, as well as working with a business name registration company, will not only save you money but also prevent you from being turned down for the business name you want to use.
- Create a name that is not available for use. Most business owners think that if the state accepts their business name application, then they can use the name as they wish. This is not the case. Unless the fictitious business name company performs a trademark verification, the business owner could find his name rejected after using it for months. As soon as an unauthorized use of a business name is discovered, the business can be subjected to litigation, forcing the owner to change the name, urgently file for a trademark or both.
- Create a name that is similar to an existing trademark. As indicated above, a thorough fictitious business name search will help business owners identify potential problems with selected names. A business name that violates a state or federal trademark presents risk to the new venture and needs to be corrected before it is too late. An attorney should always be consulted when ownership issues arise over use of a business name as a trademark.
Further Assistance and Resources
San Francisco business owners looking to file a FBN may seek further assistance from the San Francisco Office of the Treasurer & Tax Collector, where they can find helpful information related to fictitious business names and local ordinances that may apply to them. Additionally, the San Francisco Better Business Bureau offers a plethora of information and online tools ranging from a comprehensive online business directory to free consultation services provided by accredited business professionals to a handy complaint resolution tool to a litany of other services . Finally, the Asian Neighborhood Design, Inc. is a non-profit organization that offers free consulting for small businesses in the San Francisco area, which includes New Business Consultations to help new business owners understand the requirements for operating a business in the City, which also includes issuing fictitious business names, and business plan assistance.