Business Licenses for Corporations

Fictitious Business Name Statement

Defined: A Fictitious Business Name (FBN), also known as the dba (doing business as), is the business name of a company that does not contain the legal name(s) of the owner(s) or doesn't match the

company's name on file with the Secretary of State. A corporation is not required to register an FBN unless it operates under a name different from its name on file with the Secretary of State. This is because the state has already received basic contact information for the corporation by virtue of its filing incorporation papers.

Purpose: The purpose of filing a FBN Statement is twofold: first, to prevent customer confusion between two businesses with the same name; and second, to provide customers with an easy way to find the owners or agents of a business for service of process and general contact information. Unless the corporation is conducting business under a name other than the one listed in its incorporation papers, you may not need to file an FBN Statement for your corporation.

Filing and Notification: The proper filing of an FBN Statement is a two-step process. First, the fictitious business name statement is filed in the county in which the corporation has its principal place of business. The form for this filing will be available from the clerk's office in the county in which it will be filed. The second step is notification. Within a short period of time, generally within 30 days of filing, the FBN Statement must be published in an approved newspaper in the county in which it was filed. The clerk's office will provide you with a list of approved newspapers.

Choosing A Corporate Name: Even if you're not required to file an FBN Statement for your corporation, you may still wish to conduct a search of fictitious business names in your county prior to incorporation, when choosing a name for your corporation. Fictitious names can be searched in the clerk's office of any county, and some counties have their fictitious business names available online.

For an interesting overview of this topic, read Firms Must Comply with 'Fictitious Business Name' Rules.

Local Licenses

The focus for local licenses is twofold: collection of local taxes and public safety.

Business License (Local Tax Registration Certificate)

You'll probably have to obtain a business license for your corporation from the city in which your corporation has its principal place of business. A business license is a registration with that city's tax collector for the collection of local business taxes. Local business taxes are levied based on a variety of criteria, including business type, location with the city, number of employees, gross income, net profit, and total payroll. The county or city clerk will have information about this license.

Zoning Permits

Zoning laws are local ordinances that limit the use of a particular property, and may regulate what activities may occur on the property, including the type of business that may be conducted. Your corporation's business must comply with the local zoning laws or apply for a variance, a conditional use permit, or an exception. The City Planning Department is generally in charge of local zoning permits and regulations.

State and Federal Licenses and Permits

Whereas the focus for local licenses is on the collection of taxes and public safety, state and federal regulation in this area tends to focus on the type of work done by a business and its qualifications to do that work. A good rule of thumb for determining if your corporation's business will require additional licenses or permits is whether the mismanagement of your business would cause harm to the public. Types of businesses that are highly regulated by states include car repair, health care, and attorneys.

A federal permit or license is required for conducting the following types of business: providing investment or counseling advice, manufacturing alcohol or tobacco products or making or selling firearms, and constructing or operating a radio or television station, among others. The federal agencies governing the above list of businesses are the Securities and Exchange Commission, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Communications Commission.

Information about Licenses and Permits

The "Directories" section at AllBusiness.com includes a "Business License Directory" that directs you to state Web sites that offer business license information. Many states have agencies that act as clearinghouses for permits and permitting agencies, which should be available at these state Web sites. Also be sure to read Understanding Zoning, Licensing, and Permits.

Additional information about other licenses or permits required for your corporation can be found at the following sources:

• City government offices;
• State and local Chambers of Commerce;
• Office of Small Businesses at the state level;
• Trade associations or professional groups.