Disclaimer: This resource is for informational purposes only and is not legal advice. If you need legal advice, consult an attorney.
What is an ABN?
By: Joel Drew
1. What is an ABN?
An assumed business name (“ABN”) is the trade name, or fictitious business name, under which a business is conducted. A business owner can accept payments, advertise and otherwise present themselves as a business under this name. An ABN is sometimes also referred to as a “DBA” or “Doing Business As” name.
An ABN may be registered to an individual or to an entity (like a corporation or LLC). An ABN is not a legal entity. If an ABN is assigned to an individual, for example, the person is still acting as a sole proprietor (they do not have any protection from liability if they are sued for something related to their business).
Under Oregon law, no business may do business under an ABN unless they have registered the name with the Oregon Secretary of State Corporate Division. The registration of an ABN is an administrative function that is intended to protect the public by allowing individuals to determine with whom they are doing business. An ABN Registration is not a trademark and does not give the registrant any ownership rights in the use of the name. For information on ownership rights in a name, you should research trademarks.
An assumed business name is defined as one or more words or numerals, or a combination of words and numerals, that a person uses to identify their business. However, a name using the surname of an individual coupled with any combination of the individual’s given names or initials does not require an ABN.
For example, if Cecilia Johnson intends on running Daylight Donuts as a sole proprietor, she will need to register an ABN with the Secretary of State. If she wants to name the business Cece Johnson’s Donuts, she will not need to register an ABN (not as catchy though, is it?).
2. How to Register an ABN with the State of Oregon
To register an ABN, it is important to first make sure that the name is not already taken. Search the name you wish to register using following link: https://sos.oregon.gov/business/Pages/find.aspx
Forms for registering an ABN can be obtained from the Secretary of State website, and the registration forms are filed at the Secretary of State’s office: https://sos.oregon.gov/business/Pages/assumed-business-name-registration-dba.aspx
The registration form itself is self-explanatory. A few helpful tips: 1) the description of the business should be short but descriptive; 2) make sure to provide a mailing address where you can be sure you will receive important notices; and 3) most folks check the box indicating “all counties.”
The filing fee for an ABN Registration is $50. The Registration must be renewed every two years or it will expire. The Secretary of State will mail a reminder notice together with a renewal form to the authorized representative listed on the original application. The renewal fee is $50.
If the business is transferred to another person, or if a sole proprietor chooses to convert the business into an LLC or Corporation, the registrant should file an Amended ABN Registration. This will transfer ownership of the ABN. An ABN Amendment should be filed with the Oregon Secretary of State and is free of charge.