Fictitious business name statements
AB 1670, c. 716 of 2007
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AB 1670, c. 716: Fictitious business name statements. Revises the conditions under which a new fictitious business name must be filed and revises the content of the fictitious business name statement.
The sponsor of this bill was the California Association of Clerks and Election Officials. The California Association of Clerks and Election Officials (CACEO) maintains that changes regarding intent as proposed by this bill will eliminate confusion about why statements are filed in the first place, as stated by CACEO, "Many business owners believe the filing of the statement is a protection for the business owner and a reservation of the name for their exclusive use. In reality, the statement is filed as a consumer protection for those doing business with the Fictitious Business in the event legal action must occur." In addition, CACEO argues that changes regarding flings of limited partnerships, corporations, or limited liability companies filings with the California SOS will ensure that county clerks can verify the status of these entities in the SOS statewide database. Further, CACEO asserts that clarifying the definition of "registrant" to mean the actual business owner will make the filing process more business friendly for both the business owner and the customer needing to obtain legal owner information about these Fictitious Business Names.
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