What is Assumed Name?

Definition of an Assumed Name which is also known a DBA or a Fictitious Name?

An assumed name is deemed the simplest form to transact business and it is filed with a county clerk's office or the secretary of state that varies on each state statue of business formation. An assumed name does not maintain operating agreements and bylaws like an LLC or a corporation.

Renewal of an Assumed Name:

An assumed name does not file an annual or biennial report to maintain it, rather it renews every after five or ten years that must be confirmed with the state or county, where it was originally registered.

How to file taxes for an Assumed Name?

A form 1040 is filed along with the required schedules such as schedule C or Schedule E. The schedule is selected based on an active, passive or a kind of income. Few examples are described below;

1. Schedule C is filed for a trading or service income.
2. Schedule E is filed for the real estate income.
3. Schedule F is filed for the farming income.

Who creates an Assumed Name?

An assumed is generally established for a small business such as a salon or grocery store. The assumed name does not provide a protection to the personal assets and the social security number is used for any financial activity such as to open a bank account or applying for a loan.

How to open a bank account for an assumed name?

A business certificate is provided to open a bank account along with the social security number instead an EIN which is recommended for the corporations and limited liability companies.

Can A Non US Resident create an Assumed Name?

No, it is not allowed for the Non US Residents. A business owner can only serve as a registered agent for an assumed name who must be physically present in the USA.