I started a lawn mowing business, I call it Best Lawns Mowing. The Bank says that I need some special filing to put this name on my checks. Do you know what they are talking about?
I would suspect what the bank is requesting is proof that you have filed an assumed name certificate in the County Clerk’s Office. This certificate, commonly referred to as the “D/B/A” certificate, is filed to put the world on notice as to who Best Lawns Mowing really is. That way if a person wishes to find you, to sell you something, to advertise something or to pursue legal action against you, all the person needs to do is go to the County Clerk’s Office, look in the assumed name certificates for Best Lawns Mowing, and they will be able to identify you as the actual owner.
The D/B/A name, or the designation of “doing business as”, can then be placed on your checks, and on any other accounts that you may have. You may also file sales tax under that name, and receive a sales tax number under that name.
Also remember once you have closed the business, terminate the D/B/A form. This is done by a simple termination statement being filed in the Clerk’s Office. This is just as important as the original filing, so that if someone later on opens a business with the same name, you will not be responsible for the new business’ debts. The last thing you want is to be sued for something, and not know a thing about it, but a new party has been using your same name, and you get caught in the middle. Unlike corporation, where a name can only be given out once, assumed names can be the same between different people. This can cause confusion, the best plan is to take care of business, when you’re done with it, terminate it.
By the way corporations can also have assumed names. They are basically done the same way, by filing a form. But this must be filed in Albany with the Department of State. The form used identifies the corporation, and then also lists which counties the assumed name will be used in. Again, when the Corporation is done with the assumed name, there should be a filing done with the Department of State terminating the name(s).
As always this is a general answer, to a general question. You should always consult your attorney about the specific issues that surround your specific needs.
If you have a question for Attorney Kukuvka, please forward it to: Cynthia M. Kukuvka, Attorney at Law, 330 E. Main St, Palmyra, NY 14522, or e-mail to cklaw@verizon.net.