Do I Need a Trade Name as a Sole Proprietor?
Full Question:
Answer:
The procedures for registering a "fictitious name" for a sole proprietorship or partnership vary by state. In some cases, the small business owner simply fills out a form—known as a "doing business as" form or DBA—available at its city or county offices, has the form notarized, and pays a registration fee ranging from $10 to $100. In other cases, the small business owner is required to print a legal notice announcing the fictitious name in a local newspaper.
Please see the following CO statutes:
7-71-101. Statement of trade name required.
Except as otherwise provided in section 7-71-107, a person shall not
transact business in this state under a name other than the true name of
the person or, in the case of a general partnership that is not a limited
liability partnership, under a name other than the true name of each
general partner of the general partnership, except in compliance with this
article and not unless an effective statement of trade name is on file in
the records of the secretary of state.
7-71-102. Consequences for failure to have effective statement of trade
name filed.
(1) No person transacting business in this state under a name in
violation of section 7-71-101, nor anyone on its behalf, shall be
permitted to maintain a proceeding in any court in this state for the
collection of a debt from another with whom or with which the person
transacted business in violation of section 7-71-101 until an effective
statement of trade name for such name is on file in the records of the
secretary of state in accordance with this article.
(2) A person that transacts business in this state under a name in
violation of section 7-71-101 shall be subject to a civil penalty not to
exceed five hundred dollars. The civil penalty may be recovered in an
action brought by the attorney general in the district court in and for
the city and county of Denver and shall be transmitted to the state
treasurer, who shall credit it to the general fund. Upon a finding by the
court that a person, or any of its members, managers, or agents on its
behalf, has transacted business in this state under a name in violation
of section 7-71-101, the court may issue, in addition to or in lieu of
the imposition of a civil penalty, an injunction restraining the further
transaction of business in this state by the person and such members,
managers, and agents under such name until the person has complied with
the provisions of this article.
(3) Notwithstanding subsection (1) of this section, transacting business
in this state by a person under a name in violation of section 7-71-101
does not impair the validity of the acts of the person at any time taken,
affect title to any property or interest in property owned by the person,
or prevent the person from defending any proceeding in this state at any
time.
7-71-103. Statement of trade name.
(1) A person may deliver to the secretary of state, for filing pursuant
to part 3 of article 90 of this title, a statement of trade name for any
name other than the true name of the person or, in the case of a general
partnership that is not a limited liability partnership, other than the
true name of each general partner of the general partnership, under which
the person transacts business, or contemplates transacting business, in
this state. A statement of trade name shall state:
(a) The true name of the person or, in the case of a general partnership
that is not a limited liability partnership, the true name of at least one
general partner of the general partnership;
(b) If the person is an entity, the form of entity and the jurisdiction
under the law of which it is formed;
(c) If the person is not a reporting entity, the person's principal
address;
(d) The name, other than the true name of the person, or, in the case
of a general partnership that is not a limited liability partnership,
other than the true name of each general partner of the general
partnership, under which the person transacts business, or contemplates
transacting business, in this state;
(e) A brief description of the kind of business transacted, or
contemplated to be transacted, in this state under the name; and
(f) Such other information as the secretary of state may require.