A fictitious business name is an official business name registration that allows sole proprietorships, partnerships, and corporate entities to conduct business under a name other than their true legal name. In other words, if your name is John Doe but your business fixes computers, using a fictitious business name would allow you to select one that describes what you do rather than having to work under your legal name only. This generally helps a business be more successful in attracting clients. A fictitious business name may also be used when setting up the financial aspect of a company such as bank accounts or stock.
Fictitious business names are also referred to as “Doing Business As” (DBA), “Assumed Names,” or “Trade Names.” Some states will allow you to file fictitious names at the state level while others will require they be filed at the local level. Be aware that a few states will not recognize any fictitious names at all and that some have very specific requirements that must be met when using a designation other than your legal name. In addition, in many jurisdictions, it is common to require a business to publish the use of their fictitious business name in an authorized source such as an approved newspaper.
Though any type of entity can file a fictitious business name, there are restrictions when it comes to using corporate indicators. For example, a sole proprietorship or partnership cannot add a corporate indicator to their fictitious business name such as “Inc.” or “LLC.” Similarly, a corporate entity can only use the corporate indicator that is associated with the legal entity, meaning an LLC cannot use a fictitious business name with a corporate indicator of “Inc.”
It is important to remember that some jurisdictions require regular renewals of fictitious business names while others do not. In some cases, fictitious business names never expire. Be sure to check with your Secretary of State for specific guidelines on filing and maintaining fictitious business names. For more information on how a Registered Agent Service can help you check on name availability, prepare and file your fictitious name forms, or take care of fictitious name renewals, click here.