Are Nursing Corporations Allowed to Use a Fictitious Name?

A fictitious name is a name a business uses that differs from its legal name. It is essential because it helps the business have a more memorable or professional name.So, are nursing corporations allowed to use a fictitious name?

Yes, nursing corporations are allowed to use a fictitious name. They need to follow specific rules and get permission from the state to use this name.

This guide will discuss why nursing corporations might want a fictitious name, the steps to get one, and the rules they need to follow.

What is a Fictitious Name in Professional Nursing Corporation?

A fictitious name is a name a business uses that differs from its legal name. This name is also called a “Doing Business As” (DBA), assumed name, or trade name. Businesses get permission from the state or county to use this name when they do business.

Using a fictitious name can be helpful for different kinds of businesses, like sole proprietorships, LLCs, and corporations. This name allows them to operate under a name that might be easier for customers to remember or recognize.

At MollaeiLaw, I am a corporate attorney, helping businesses file for these names across the United States.

Are Nursing Corporations Allowed to Use a Fictitious Name? Learn the Name Requirements

Yes, nursing corporations are allowed to use a fictitious name.

If a nurse wants to work under a name different from their license, they need a fictitious business name permit. This is also true if a doctor owns a corporation with a different name.

If a group of nurses forms a partnership with a name different from their licenses for ads, signs, or announcements, they need a permit, too.

For example, John Smith, M.D., can work under his name without a permit. But if he wants to work at “Light Giver Medical Group,” he needs a fictitious name permit.

Similarly, if Dr Joe, Dr June, and Dr Jay want to work as “Joe, June, and Jay, Physician Partnership,” they need a permit. If they use their names, no permit is needed.

What is the Purpose of Using a Fictitious Name in Nursing Corporation in California?

Here are a few purposes of using fictitious name in nursing corporation in California.

Informing the Public

Using a fictitious name helps let people know who owns the business. When a nursing corporation files a fictitious name, the name and the owner’s identity are recorded publicly.

This way, people can find out who is really behind the business. It helps protect consumers from doing business with someone with a bad reputation.

Creative and Catchy Assumed Name

A fictitious name lets a nursing corporation use a more creative and catchy name. For example, instead of using a plain name like “Smith Nursing Services,” the business can use a more appealing name like “Caring Hands Nursing.” This makes the company more attractive to customers.

Multiple Business Names

Sometimes, a nursing corporation might want to operate several businesses without creating a new legal entity for each one. A fictitious name allows them to do this. For instance, a corporation could use different names for nursing services or branches.

Thus, they can have “Caring Hands Nursing” for one service and “Healthy Living Nursing” for another, all under the same corporation.

What Laws and Regulations Must You Follow When Using a Fictitious Business Name? Business Name Requirements for Starting a Professional Nursing Corporation

Since January 1, 1980, California has required medical corporations to have a fictitious business name permit. People who want to use a fictitious name for their medical business should review the following laws and rules:

1. Business and Professions Code (BPC)
2. Corporations Code (CORP)
3. Insurance Code (INS)
4. Penal Code (PEN)
5. Welfare and Institution Code (WIC)
6. California Code of Regulations

Common sections of the laws and rules related to getting and using a fictitious name permit include, but are not limited to, the following:

1. BPC Sections: 2285 to 2286, 2415 to 2417.5
2. CORP Sections: 13400 to 131410
3. INS Section: 1871.4
4. PEN Sections: 549 to 550
5. WIC Sections: 14107 or 14107.2
6. CCR Section: 1350

What is Required to Apply for a Fictitious Name Permit When Forming a Professional Nursing Corporation in California?

The Medical Board of California will give a fictitious name permit only if these rules are followed:

• The people applying or shareholders must have valid licenses as doctors or podiatrists.
• The applicants must fully own and control the business, following Corporations Code Sections 13401 and 13401.5.
• The fictitious business name must not be deceptive, misleading, or confusing.
• Once issued, the permit must be displayed so all patients and employees can see it at each business location listed on the license.
• The board can only revoke or suspend the permit if the business follows the laws and rules.
• If a doctor’s or podiatrist’s license is revoked or suspended, their fictitious business permit automatically becomes invalid.

What are the Benefits of Forming a Nursing Corporation Using a Fictitious Name for the Nurse Professional Corporation?

Using a fictitious name keeps you following the articles of incorporation. If you don’t file a fictitious name when required as a licensed professional, you could face fines, lose the right to enforce contracts, and even have your professional service shut down.

Other advantages of a fictitious name include:

• It lets a sole proprietorship or partnership use a desired business name without the complexity and cost of formally creating a business entity. You can make a professional business brand that connects with customers without forming an LLC or corporation.
• A sole proprietor or partner can open a business bank account to receive and make payments. Many banks require a copy of your filed DBA to open an account in your business name.
• It helps you control costs and reduces the amount of paperwork and compliance tasks when expanding your LLC or corporation.

In summary, a fictitious name helps you stay legal, build a strong brand, open business bank accounts, and manage costs and paperwork effectively.

FAQ

Wrap Up

Hopefully your confusion related to the question “Are Nursing Corporations Allowed to Use a Fictitious Name?” is answered.

Nursing corporations are allowed to use a fictitious name. They must follow specific rules and obtain the necessary permits from the state.

Using a fictitious name can help nursing corporations create a memorable and professional brand. Understanding and complying with these regulations ensures smooth operation and legal protection for the business.