DBA Filings Not Required, but They’re a Good Idea

Question: I have a fictitious business name registered in San Diego County and now want to do business in other counties. Do I need to register the DBA in each county where I do business?

--Diana Cavagnaro, San Diego

Answer: You don’t necessarily need to file in each county where your company will do business. A fictitious name filing (also known as a “DBA” for “doing business as”) is not a requirement for doing business, like a business license is. Businesses typically file a DBA because most banks ask for a company’s DBA before they will open a new account in a business name.

Instead, a DBA acts more as a protection for the business, because it registers the exclusive use of your company name in the county where filed. If you have a name registered in one county, someone else can begin doing business using the same name (unless your DBA is your own full legal name) in an adjacent county where you have not filed for protection. The searching for availability for use, the application for registration and the legal publishing of a name is handled individually by each county recorder.

If you want to pursue fictitious-name filings in additional counties, some allow name searching and application for registration to be done online. You can find the addresses and telephone numbers for each county recorder in the state through our Web site: https://www.calgold.ca.gov.

Broader-range name protection (for example, by the establishment of a formal partnership or corporation or by the registration of a trademark or service mark) is handled by the California secretary of state, https://www.ss.ca.gov/business/business.htm; or on a national level by the U.S. Department of Commerce, https://www.doc.gov; or U.S. Patent and Trademark Office, https://www.uspto.gov.

--Don Johnson, Permit

Assistance Center, Sherman Oaks

Q: I own a carpet and upholstery cleaning business where we go to our customers’ homes to render service. Do you know if there are mobile terminals we can use to do remote credit card transactions?

--Rick Reiss, Culver City

A: Actually, for merchants who provide an on-site service, such as carpet and upholstery cleaning, I recommend that in most cases they not use a wireless credit card terminal. Wireless systems cost more and the available technology does not always ensure a clear signal in all locations.

Instead, I would suggest that you have your technicians carry a manual credit card imprinter, obtain an imprint of the card on a credit card sales draft form at the client’s home, and call the toll-free authorization number provided by the client’s credit card processor to verify the credit card.

Upon returning to the office, you can have your support personnel key the credit card information and authorization code into your card processing terminal or software to deposit the funds.

Because wireless terminal systems require a significantly higher investment for the equipment, plus the cellular or radio network service charges that are required, this “voice authorization/manual entry” method makes more business sense for many mobile businesses. For certain businesses, however, such as flea market merchants who have a higher volume of sales and a need to quickly complete each transaction, mobile credit card terminals do make more sense.

There are several equipment choices available. Lipman USA (https://www.lipmanusa.com) manufactures an all-in-one, battery-powered terminal (model 2090), which is available in either a CDPD cellular version or a Mobitex radio version, both of which require set up of wireless communication service with a local or regional provider. A second option is a battery-powered terminal (model Tranz 420) from Verifone (https://www.verifone.com) that connects via a special adapter to a Motorola flip-phone or a high-powered “bag phone.” In areas where the cellular signal may be weak or limited, I recommend the bag phone solution.

More information on this equipment can be obtained at our Web site, https://www.ecx.com.

--Mike Fisher,

executive vice president,

E-Commerce Exchange, Irvine

Q: I have owned a retail business for five years. I am now planning to expand through either a merger, partnership or IPO. Would you have some suggestions on the process and on finding a reputable agent to help me?

--Leslie Gainer, Cambria

A: I don’t want to discourage you unduly, but unless it has an absolutely fantastic product or service, the chances of a small business finding a merger partner are rather remote, in my opinion. Likewise, the idea of an IPO is exciting, but unless you have a “dot-com” business, or a traditional business that is irresistibly attractive, you are likely to be disappointed.

That said, the first step in generating any interest at all from a merger partner or investment banker is to have a completely sound business plan. Without a well-laid-out plan you won’t entice anyone to even think about assisting you.

Your plan must include a short, sensible mission statement. Don’t make it so exotic that no one can understand it. You must follow the mission definition with a section called the “executive summary” that--in a page or two--highlights the plan. Potential partners or investors should be able to quickly read your summary and grasp what your business concept is all about without having to read the entire document.

Your plan should include a section on the management of the company. A few paragraphs on each key manager are all that is needed, but it is vitally important that the management team comes across as experienced and capable of taking the company to the next level, provided that capital can be raised.

You must also detail what your proposed merger will do for a new merger partner. Or, if an initial public offering of stock is suggested, what you will do with the influx of capital you’ll receive. How new funds will be allocated must be demonstrated and proven to the best of your ability.

The most important part of the plan is the financial information. Your current financial situation must be included, and summaries of the last three years will also be helpful. Include profit and loss statements, balance sheets, cash flow charts and a current aging report, showing accounts receivable and accounts payable. Provide pro formas for the next three years that include projected sales, expenses, profit, cash flow spread sheets and plenty of explanatory footnotes.

You should not contact an attorney or investment banker until your plan is as perfect as possible.

Finding the kind of intermediary you need to help you will take some digging. The larger, more visible firms will generally not be interested in a smaller situation.

I suggest that you start by searching two Los Angeles-area network groups: All Cities Resource Group, (310) 577-2142 (https://www.allcities.org) and the Professionals Network Group Inc., (818) 382-6496 (https://www.png.org).

--Gene Pepper, president,

Alliance Business Consultants,

Glendale

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If you have a question about how to start or operate a small business, mail it to Karen E. Klein, Los Angeles Times, 1333 S. Mayflower Ave., Suite 100, Monrovia, CA 91016, or e-mail it to kklein6349@aol.com. Include your name, address and telephone number. This column is designed to answer questions of general interest. It should not be construed as legal advice.