1. 1 WELCOME TO THE FBN SESSION 5th ANNUAL STAFF WORKSHOP MARCH 15, 2011 – Southern California APRIL 19, 2011 – Northern California With a Little Help From our Friends…

2. 2 PRESENTED TO YOU TODAY BY: Carla Reinking- Sonoma County Nancy Turner -Napa County

3. 3 SESSION SCHEDULE 9:00 – 9:30 Welcome & Participant Introductions Disclaimer What is Included in Handouts 9:30 – 10:30 Overview Fictitious Business Name Purpose, Review & Comments 10:30 – 10:45 BREAK 10:45 – Noon Examination Procedure/Examples/Registrants/Signers Noon – 1:30 LUNCH 1:30 – 2:45 Abandonment of Fictitious Business Name Withdrawal of General Partnership Proofs of Publication Indexing/Scanning

4. 4 2:45 – 3:00 BREAK 3:00 – 3:40 Mutual Problems/Questions 3:40 – 4:20 Customer Service 4:20 – 4:30 Evaluations Workshop Adjourns

5. 5 DISCLAIMER / WARNING This is a training workshop, but local practices do vary from county to county according to local policy and practice as well as local county counsel opinions. No practice or procedure you become aware of as a result of this workshop should be implemented in your own office without he full AWARENESS and APPROVAL of the County Clerk or Recorder for whom you work.

6. 6 HANDOUTS COUNTY CLERKS REFERENCE MANUAL Attachment A – Websites/Code Sections Attachment B – FBN General Information Attachment C – Blank Samples Attachment D – FBN Filing Examples

7. 7 GOALS 2011 Workshop Gain understanding of the FBN process File FBNs correctly and with confidence Use CRM as a reference

8. 8 Fictitious Business Names County Clerks Reference Manual (CRM) A reference manual for use by statewide County Clerk personnel

9. 9 FICTITIOUS BUSINESS NAME STATEMENTS Disclaimer on CRM p.___

10. 10 Business & Professions 17900(a)(1) 17900(a)(1) The purpose of this section is to protect those dealing with individuals or partnerships doing business under fictitious names, and it is not intended to confer any right or advantage on individuals or firms that fail to comply with the law. The filing of a fictitious business name certificate is designed to make available to the public the identities of persons doing business under the fictitious name.

11. 11 STATUS OF FILING Status of the filing B&P 17920 First/Original Filing: valid for 5 years from date of filing Renewal: 40 days after change of facts –A residence address of registered owner does not make the filing expire or 5 years from date of filing Abandonment: When abandonment filed

12. 12 RETENTION RETENTION – The hard copy of the FBN, together with its proof of publication and any abandonment or withdrawals of general partner, as applicable, is retained for 4 years after the FBN expires, for a total of 9 years, after which they all may be destroyed or otherwise disposed B&P 17927 The index/indices are also retained for a total of 9 years, after which the index/indices and the information they contain may be deleted B&P 17925(b)

13. 13 WHO IS REQUIRED TO FILE & WHEN B&P 17910 – When to file Every person who regularly transacts business in this state for profit under a fictitious business name shall, within 40 days of commencement, change, or expiration, shall do all of the following: (a)File a fictitious business name statement in accordance with this chapter not later than 40 days from the time the registrant commences to transact such business.

14. 14 When to file (cont.): b)File a new statement after any change in the facts, in accordance with B&P 17920(b) (c)Re-File a statement after 5 years when there are no changes to the facts set forth in the original filing.

15. 15 Place of Filing B&P 17915 With the Clerk of the County in which the registrant has his/her principal place of business in this state With the Clerk of Sacramento County if there is no place of business in this state May file in counties other than principal place of business as long as requirements of 17915 are met

16. 16 Do Not Have To File B&P 17911 This chapter does not apply to: Nonprofit corporations, organizations or associations, etc. –That includes churches, labor unions, fraternal and charitable organizations, foundations, and similar organizations

17. 17 Name not “Fictitious” Business name is not “fictitious” if: 1.A surname (last name) is used in the business name and no other words suggest the existence of additional owners B&P 17900(b)(1) –Johnson Portrait Photography – OK –Johnson & Sons Portrait Photography – Not OK 2.Corporation, LLC, LP using name as registered with the Secretary of State B&P 17900(b)(3), (b)(4), (b)(5)

18. 18 REVIEW OF DOCUMENT Verify the document appears complete, is not on an obsolete form, is presented in ink, includes payment and has an original signature Indication is made to reflect New Statement, Refile, or Renewal With Change Count the number of business and registrant names to verify the check is made out for the appropriate amount 17913(b)(1)

19. 19 REVIEW (cont.) Verify legibility and spelling inconsistencies Check for legitimate addresses and county name 17913(b)(2) Verify that the type of business matches the registrants listed 17913(b)(4) Verify Corporate/LLC registrants are registered at Secretary of State website B&P 17910.5 (a) –www.sos.ca.gov

20. 20 Verify that the person who signed the document is authorized by code by checking the name and title Full name of registrant(s) 17913(b)(3) Verify that a manner in which the business is being conducted is indicated REVIEW (cont.)

21. 21 COMMENTS The filing of FBN Statement is not an exclusive reservation of the name. The County Clerk is required to file any statement that meets the requirements of this chapter and is accompanied by the required filing fee. The County Clerk is not authorized to reject a statement on the grounds that the particular fictitious business name is already in use or the statement was not presented for filing within the time specified in B&P 17910 (B&P 17927 Law Revision Commission Comments)

22. 22 EXAMINATION PROCEDURE

23. 23 EXAMINATION PROCEDURE Purpose of Examination: –To check for legibility, accuracy and completeness IF AN FBN IS NOT LEGIBLE, ACCURATE OR COMPLETE, IT SHOULD NOT BE FILED UNTIL CORRECTED CRM p. ___

24. 24 EXAMINATION PROCEDURE Pre-filing Checklist 1.Place of Filing B&P 17915 2. Person or Entity Not Required to File B&P 17911 3. Business Name is Not Fictitious B&P 17900 (same as pg. 6, FBN Quick Reference Pre-filing Checklist)

25. 25 EXAMINATION – STEP 1 ACTION Review FBN for the following: Must be legible, complete and meet Filing Requirements #1-7 CRM p.__ as follows: Name(s) of fictitious business(es) B&P 17913(b)(1) Additional FBNs can be included on a separate sheet of paper, if necessary

26. 26 EXAMINATION – STEP 1 If any fictitious business name includes the words: 1)“Corporation, Corp., Incorporated, or Inc.,” registrant must be a corporation – B&P 17910.5(a) 2)“Limited Liability Company, LLC, LC,” registrant must be a limited liability company – B&P 17910.5(b) NOTE: B&P 17910.5(c) reads: “A County Clerk shall not accept a fictitious business name statement which would be in violation of this section.”

27. 27 EXAMINATION – STEP 1 Street address and county of principal place of business B&P 17913(b)(2) If principal place of business is located outside of California, statement must be filed in Sacramento County B&P 17915

28. 28 EXAMINATION – STEP 1 PO Box or PMB addresses are only acceptable as mailing addresses and only listed if in addition to the physical street address Must be located in county where FBN filed, but law does not preclude filing in another county as long as filed where principal of business is located B&P 17915

29. 29 EXAMINATION – STEP 1 Full name of registrant(s) – B&P 17913(b)(3) If registrant is a corporation or LLC, insert name as it appears in their articles of incorporation or organization on file with the Secretary of State [current address] Residence address of registrant(s) B&P 17913(b)(3) If customer does not have a separate business address, their residence address is their [acceptable as the] business address

30. 30 EXAMINATION – STEP 1 Nature in which business is being conducted – B&P 17913(b)(4) Date of the start of business or N/A 17913(b)(5) Date business commenced should be the start date or N/A a.Cannot use a future date, registrant must decide b.If adding a name to an existing business, there may be two start dates

31. 31 EXAMINATION – STEP 1 Signature of registrant B&P 17914 a)To determine what registrant(s) must be listed, check the form to see how business is being conducted b)Signature depends on customer’s answer to #3 [who are the registrants]

32. 32 EXAMINATION – STEP 1 Signature and printed name of registrant – also title if applicable NOTE: See CRM pages _____ for Registrants Required / Who Can Sign

33. 33 EXAMINATION – STEP 1 Check type of filing box (not statutory requirement – follow local guidelines) a.A first filing (New or Original filing)* b.A refile with no changes filed within 40 days of expiration of previous statement c.A refile with changes (may be a New filing)* d.A refile after 40 days of expiration of previous filing* * Publication required (A, C, & D)

34. 34 EXAMINATION – STEPS 2 and 3 Step 2: File the statement (follow local county guidelines) a. Assign file number b. Affix “Filed” stamp to statement Step 3: Cashiering/Receipting

35. 35 EXAMINATION – STEP 4 Step 4: Issue certified copy Step 5:Give customer a list of adjudicated newspapers and explain the publication requirements Step 6:Inform customer about expiration of FBN Step 7:Give additional information etc., as applicable

36. 36 REGISTRANTS REQUIRED WHO CAN SIGN REGISTRANTS REQUIRED B&P 17913(3) WHO CAN SIGN B&P 17914

37. 37 WHO CAN SIGN Who Can Sign B&P 17914 a)Individual, by the individual b)Husband and wife, by the husband or wife c)General partnership, LP, LLP, copartnership, joint venture, or unincorporated association other than a partnership, by a general partner d)LLC, by a manager or officer (managing member is acceptable)

38. 38 WHO CAN SIGN (cont.) e)Trust, by a trustee f)Corporation, by an officer of the corporation g)State or local registered domestic partnership, by one of the domestic partners

39. 39 EXAMPLES

40. 40 #1 INDIVIDUAL REGISTRANTS REQUIRED B&P 17913(3) If the registrant is an individual, insert his or her full name and residence address WHO CAN SIGN B&P 17914(a) If the registrant is an individual, the statement shall be signed by the individual listed as the registrant

41. 41 #2 HUSBAND & WIFE REGISTRANTS REQUIRED B&P 17913(3) The full name and residence address of both husband and wife (listed separately – i.e., not as Mickey and Minnie Mouse) WHO CAN SIGN B&P 17914(b) Statement can be signed by the husband or wife or both.

42. 42 #3 GENERAL PARTNERSHIP REGISTRANTS REQUIRED B&P 17913(3) –The full name and residence address of each general partner – Must have at least two registrants –A general partner can be a corporation and/or LLC (Do not allow the name of the general partnership to be included as a separate registrant) WHO CAN SIGN B&P 17914(c) –One of the general partners

43. 43 #5 LIMITED PARTNERSHIP REGISTRANTS REQUIRED B&P 17913(3) –The full name and residence address of each general partner (most have only one general partner) –Must have at least one registrant (general partner) – do not include names of any limited partners (Do not allow name of LP to be included as a separate registrant) –A general partner can be a corporation and/or LLC

44. 44 #6 LP (cont.) WHO CAN SIGN (cont.) One of the general partners – Name of GP m ay include the name of the LP Susan Smith, General Partner of Water Treasures LP Susan Smith, CEO of Treasure Island LP as GP of Jewels of the Ocean, Inc

45. 45 #7 CORPORATION REGISTRANTS REQUIRED B&P 17913(3) Name and address of the corporation as set out in its articles of incorporation on file with the California Secretary of State, and the state of incorporation WHO CAN SIGN B&P 17914(f) Statement must be signed by a corporate officer and his/her title stated

46. 46 # 7 CORPORATION (cont.) NOTES –Corporation name must be listed EXACTLY the same as it is in the articles of incorporation (no abbreviations unless it is abbreviated in the articles, i.e., Corp, Inc) –Titles not acceptable include: General Manager, Controller, Compliance Officer, Foreman, Winemaker, Owner, Attorney in Fact, Corporate Attorney, Store Manager, etc.

47. 47 # 8 TRUST REGISTRANTS REQUIRED B&P 17913(3) The full name and residence address of each trustee (The name of the trust cannot be listed as a separate registrant, but can be included with the name of the trustee, i.e., Susan Smith, Trustee of the Smith Family Trust) WHO CAN SIGN B&P 17914(e) Statement must be signed by one of the trustees

48. 48 #9 CO-PARTNERS REGISTRANTS REQUIRED B&P 17913(3) –The full name and residence address of each general partner – Must have at least two registrants –A general partner can be a corporation and/or LLC WHO CAN SIGN B&P 17914(c) –One of the general partners

49. 49 #10 JOINT VENTURE REGISTRANTS REQUIRED B&P 17913(3) –The full name and residence address of each general partner – Must have at least two registrants –A general partner can be a corporation and/or LLC WHO CAN SIGN B&P 17914(c) –One of the general partners

50. 50 #11 UNINCORPORATED ASSOCIATION REGISTRANTS REQUIRED B&P 17913(3) –The full name and residence address of each general partner – Must have at least two registrants WHO CAN SIGN B&P 17914(c) –One of the general partners

51. 51 #12 LIMITED LIABILITY COMPANY REGISTRANTS REQUIRED B&P 17913(3) Name and address of the LLC as set out in its articles of organization on file with the California Secretary of State, and the state of organization WHO CAN SIGN B&P 17914(d) Statement must be signed by a manager (managing member) or officer and his/her title stated

52. 52 #12 LLC (cont.) NOTES –LLC name must be listed EXACTLY the same as it is in the articles of organization –Titles not acceptable include: General Manager, Controller, Compliance Officer, Foreman, Winemaker, Owner, Attorney in Fact, Corporate Attorney, Store Manager, etc.

53. 53 #13 LIMITED LIABILITY PARTNERSHIP REGISTRANTS REQUIRED B&P 17913(3) –The full name and residence address of each general partner – Must have at least two registrants (Do not allow the name of the LLP to be included as a separate registrant)

54. 54 #13 LLP (cont.) WHO CAN SIGN B&P 17914(c) –One of the general partners NOTES Limited Liability Partnerships are entities that shall engage in – the practice of public accountancy –the practice of law –the practice of architecture –shall have two or more licensed partners

55. 55 #14 STATE OR LOCAL REGISTERED DOMESTIC PARTNERS REGISTRANTS REQUIRED B&P 17913(3) –The full name and residence address of both domestic partners –Must be listed as separate registrants WHO CAN SIGN B&P 17914(g) –One of the domestic partners

56. 56 #15 SIGNATURE BY MARK Government Code 16 Section 16. "Signature" or "subscription" includes mark when the signer or subscriber can not write, such signer's or subscriber's name being written near the mark by a witness who writes his own name near the signer's or subscriber's name; but a signature or subscription by mark can be acknowledged or can serve as a signature or subscription to a sworn statement only when two witnesses so sign their own names thereto

57. 57 WITHDRAWAL AS GENERAL PARTNER FROM FICTITIOUS BUSINESS NAME

58. 58 WITHDRAWAL FROM PARTNERSHIP CRM p.___ PURPOSE: To give notice that one or more registrants are withdrawing as partners from an existing fictitious business name COMMENT: B&P 17923(a) states that a Withdrawal from Partnership may be filed; it is not required and is entirely up to the partner(s) to determine the necessity of filing

59. 59 WITHDRAWAL CODE B&P 17923(a) Any person who is a general partner in a partnership that is or has been regularly transacting business under a FBN may, upon withdrawing as a general partner, file a statement of withdrawal from the partnership operating under a FBN. The statement shall be executed by the person filing the statement in the same manner as a FBN statement and shall be filed with the county clerk of the county where the partnership filed its FBN statement.

60. 60 WITHDRAWAL REVIEW & PROCESS Must be legible, complete and meet all filing requirements 1.Must apply to a current fictitious business name(s) previously filed B&P 17923(b)(1) 2. Street address of the principal place of business B&P 17923(b)(3) 3. File date of the FBN statement relating to the withdrawal from partnership B&P 17923(b)(2)

61. 61 WITHDRAWAL Review & Process (cont.) 4.The name of the county where filed B&P 17923(b)(2) 5.File number of active FBN B&P 17923(b)(2) 6.Full names and residence addresses of each person withdrawing as partners B&P 17923(b)(3)

62. 62 WITHDRAWAL Review & Process (cont.) –Note: If registrant is registered with the California Secretary of State as a corporation or a LLC – insert address as shown in their articles of incorporation/organization 7.Signature of withdrawing party must be executed in the same manner as the FBN statement B&P 17923(a); B&P 17914

63. 63 WITHDRAWAL File Procedure The following are interchangeable steps depending on each county’s guidelines and software system: 1.File the statement by: Assigning a file number Affixing a "Filed" stamp to statement 2.Cashier & Receipt 3.Issue certified copy

64. 64 WITHDRAWAL File Procedure 4.Give customer a list of adjudicated newspapers 5.Explain the publication requirements 6.Provide additional information as applicable

65. 65 WITHDRAWAL COMMENTS: Statement of Withdrawal must be filed on an active FBN The filing of a Statement of Withdrawal from Partnership does not cause the FBN statement to expire B&P 17923(d) The nature in which the business is conducted as it appeared on the previously filed FBN statement is optional and not a statutory requirement

66. 66 WITHDRAWAL Codes Related Sections of Business & Professions Code § 17923: Withdrawal of partner must be filed with the County Clerk; such withdrawal does not force expiration of FBN § 17917 / 17924: Publication requirements for withdrawing from a FBN § 17930: False statement is a misdemeanor

67. 67 ABANDONMENT OF FBN

68. 68 ABANDONMENT CODE B&P 17922(a) Upon ceasing to transact business in this state under a FBN that was filed in the previous five years, a person who has filed a FBN statement shall file a statement of abandonment of use of FBN. The statement shall be executed in the same manner as a FBN statement and shall be filed with the county clerk of the county in which the person has filed his or her FBN. The statement shall be published in the same manner as a FBN and an affidavit showing its publication shall be filed with the county clerk after the completion of publication.

69. 69 ABANDONMENT CRM p.___ PURPOSE: To make available to the public a statement by persons or business entities no longer doing business under a previously filed fictitious business name

70. 70 ABANDONMENT COMMENTS COMMENTS: A Statement of Abandonment shall be filed on an active FBN B&P 17922(a) When filing an abandonment for a FBN statement that contains multiple business names, the customer may abandon one or more of those business name(s) Publication is required

71. 71 ABANDONMENT COMMENTS COMMENTS (cont.): The FBN statement expires when the registrant files a statement of abandonment B&P 17920(c) In the case of multiple business names on a statement, the abandonment only expires the specific business name shown on the abandonment

72. 72 ABANDONMENT FILING REQUIREMENTS 1.Fictitious business name(s) previously filed B&P 17922(b)(1) 2.Street address of principal place of business B&P 17922(b)(1) 3.Filing date of the FBN statement relating to the fictitious business name(s) being abandoned B&P 17922(b)(2)

73. 73 ABANDONMENT FILING REQURIEMENTS (cont.) File number of active FBN statement B&P 17922(b)(2) 5.The name of the county where filed B&P 17922(b)(2)

74. 74 ABANDONMENT FILING REQURIEMENTS (cont.) 6.The statement of abandonment shall contain the business name(s) being abandoned, street address, ownership information, and manner in which the business is conducted as it appeared on the previously filed FBN statement B&P 17922(b) Signature of registrant must be executed in the same manner as the FBN statement B&P 17914 &17922(a)

75. 75 ABANDONMENT EXAMINATION PROCEDURE Must be legible, complete and meet all filing requirements Review Abandonment form for following entries: 1.Previous file date and file number that pertains to a current fictitious business name 2.Street address of the principal place of business and the name of county

76. 76 ABANDONMENT EXAMINATION PROCEDURE 3.The business name(s) being abandoned 4.Street address and name of county 5.Ownership information 6.Manner in which the business is conducted as it appeared on the previously filed FBN statement 7.Signature of registrant must be executed in the same manner as the FBN statement

77. 77 ABANDONMENT FILE PROCEDURE These steps are interchangeable depending on each county's guidelines and program system File the statement –Assign file number –Affix "Filed" stamp to statement Cashiering/Receipting –Issue certified copy

78. 78 ABANDONMENT FILE PROCEDURE (cont.) –Give customer a list of adjudicated newspapers and explain the publication requirements Provide additional information etc., as applicable

79. 79 PROOFS OF PUBLICATION

80. 80 PROOFS OF PUBLICATION CRM p.___ PURPOSE: To make available to the public the proof of publication NECESSITY FOR FILING: B&P 17917(d) An affidavit showing the publication of the statement shall be filed with the county clerk where the FBN statement was filed within 30 days after the completion of the publication

81. 81 PROOFS OF PUBLICATION FILING REQUIREMENTS: 1.Verify filing information pertains to a statement filed in your county 2. Certification was executed by a newspaper representative

82. 82 PROOFS OF PUBLICATION The FBN fee (as stated in B&P 17929 or determined by local code/ordinance) covers the cost of filing and indexing the statement and any affidavit of publication, furnishing one certified copy to the person filing the statement, and the cost for notifying registrants of the pending expiration of FBN B&P 17929

83. 83 PROOFS OF PUBLICATION FILING PROCEDURE PURPOSE: To file the proofs of publication (affidavits) STEP - ACTION: 1.Review proof of publication for the following: a.Must be legible, complete and meet filing requirements 2.File the affidavit according to your local county guidelines

84. 84 REVIEW OF LEGAL REFERENCES PUBLISHING: FBN - B&P 17917 Statement of Abandonment - B&P 17922(a) Statement of Withdrawal - B&P 17923(c) INDEXING: Contents of indices - B&P 17925

85. 85 REVIEW OF LEGAL REFERENCES RETENTION: Indices/Index - 4 years after FBN expires may delete information concerning that statement from the index (including proof of publication) B&P 17925(b) Hard Copy - 4 years after FBN expires may destroy or otherwise dispose of the statement, including proof of publication B&P 17927

86. 86 QUESTIONS - DISCUSSION

87. 87