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Hello, I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for. You do not need to create a new entity. You can do a fictitious name filing in Nevada and CA that creates the name for the new division. The same EIN would be the same for both divisions. You could have payroll checks issued in the name of the proper division if that is what you want to do. If I have answered all your questions, please rate my answer excellent as that is how I am compensated. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.
Is Fictitious name same as DBA? do I need to add this new name on my insurance policies (Workers comp, general liability, E&O, umbrella policy etc.). Can I separate them for health insurance purposes only as well what I mean is can I have a separate group health insurance plan for new division? and can I use all other insurances combined without incurring additional costs of buying insurances for new entity?
The fictitious name is XXXXX XXXXX as a DBA. You can add the DBA to your existing insurance to cover the new division. Whether you can have separate health care is a lot trickier issue because your health plan is governed by ERISA in terms of coverage and participation requirements. You should check with whoever handles your health plans to see if you have any issues about different coverage and standards for participation. If I have answered all your questions, please rate my answer excellent as that is how I am compensated. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.
is Fictitious name /DBA one time thing or I have to do it every year?
You only need to do it one time
Great, I have done DBA in CA (LA county and Orange County ) before, is it a must to do it also in Nevada? I would never use this new named division in Nevada at all.
Technically you do not have to do it in Nevada but you will lose the name in Nevada if someone else decides to take it. I would do it in Nevada just so I control the name in the jurisdictions in which you conduct business. If you build a reputation in CA you may want to expand to Nevada and someone else could take the name and the good will you have generated. In the end it is up to you.
Thank you very much for answering all the questions so far. One last questions, is there a limit to how many divisions I can create by using DBAs?
for one EIN?
There is no limit on the number of DBAs and divisions you can have. If I have answered all your questions, please rate my answer excellent as that is how I am compensated. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.
Can I open a new bank account with only my DBA name and not the main company name?
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