In the current economy, a lot of individuals have considered branching out and starting a business on their own. Many people who start a business by themselves spend a lot of time planning how they will make money: deciding what they will sell, how they will reach there customers, and how they will manage the day-to-day operations. Another big business decision is what to call yourself.
Many people have the mistaken belief that if they do a google search and find a website address is available then they can use this as their business name. If, however, you plan to operate a business under anything other than your own name, the law does have a say. In New York State you must file a Certificate of Assumed Name with the government and tell them what name you will be using. The form is only one page and the fee is low (only $50). This step can be crucial, though. If you enter into any contracts under the name of your new business (for renting space, hiring employees, or purchasing supplies and materials) and you have not filed the form, all of those contracts could be completely voided and/or unenforceable. Unenforceable contracts means customers can demand refunds, landlords can change the terms of a lease, and suppliers can back out of promises. Don’t get caught with a document that cannot be enforced. The time and cost of the Certificate of Assumed Name is well worth the effort.