Understanding Fictitious Business Names
A fictitious name is used when conducting business under a name other than the legal business name. Depending on the state, a fictitious name may also be referred to as a DBA (doing business as) registration or an assumed name filing. Filing for an assumed business name certificate varies by state. Some states allow online filing, while in other states, you must visit the county clerk’s office, fill out a form, and pay a fee.
States require fictitious business name filings to inform the public who owns a company. The filing puts the business name and owner’s identity on public record. Most states require registering with the Secretary of State’s office. Failure to register can result in fines and penalties.
Owners choose fictitious names that can be marketing slogans, professional monikers, or incorporate products/services. If too long or hard to spell, they can negatively impact a business. An online business may not get its preferred fictitious name as a domain.
Legal Considerations and Protections
Registering provides legal protections. For example, business owners conducting business under an unregistered fictitious name in Florida commit a misdemeanor. They cannot sue or maintain legal actions until properly registered.
The Benefits of Using Fictitious Business Names
Why use fictitious business names? They offer privacy protection, increased flexibility, and enhanced branding opportunities. Fictitious names can address issues with legal business names that are long, hard to pronounce, or not well-suited for advertising.
Sole proprietors and partnerships often use assumed names if they prefer not to use personal names publicly.
In the case of a business owned by an individual, a "fictitious business name" is any name that does not include the last name (surname) of the owner, or which implies additional owners (such as "Company", "and Company", "and Sons", "Associates", etc.).