What is a Fictitious Business Name?

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.
 

Why Do Businesses Use Fictitious Business Names?

Businesses often choose to operate under fictitious business names for various strategic and practical reasons. Let's explore some of the key motivations behind this practice.

Attracting Clients with a Descriptive Name

One of the primary reasons businesses opt for fictitious names is to create a more appealing and descriptive brand identity. Instead of using a legal name that might be generic or uninformative, companies can select a name that better reflects their products, services, or overall brand image.
For example:

• Retail: "John Smith's Clothing Store" could become "Fashion Forward Boutique"
• Services: "Johnson & Sons" might operate as "Expert Plumbing Solutions"
• Consulting: "Sarah Lee Incorporated" could use "Strategic Business Advisors"

Setting Up Financial Accounts

Using a fictitious business name can simplify a company's financial operations. When a business registers a fictitious name, it can use this name to open bank accounts, apply for loans, and manage other financial matters. This is particularly beneficial because it allows the business to operate financially under its chosen brand name rather than its legal corporate name, which may be less recognizable to customers and partners.

Legal and Compliance Reasons

In many jurisdictions, using a fictitious business name is not just a choice but a legal requirement if a business entity operates under any name other than its legal name. This compliance measure serves several purposes:

1. Public Protection: It helps prevent fraud by requiring businesses to register their operating names, making it easier for consumers to identify the legal entity behind a brand.
2. Transparency: In some states, like California, businesses must publish their fictitious name in local newspapers, further enhancing public awareness and transparency.
3. Legal Recognition: Registering a fictitious name allows businesses to enter into contracts, accept payments, and conduct other legal transactions under that name.
4. Local Regulations: Some jurisdictions require businesses to register fictitious names at the county level, ensuring local authorities are aware of business operations in their area.

Filing a Fictitious Business Name

Filing a fictitious business name (also known as a DBA or Doing Business As name) involves a series of steps that vary depending on the state and locality where your business operates. Below is a general guide to help you understand the process, along with key differences based on jurisdiction.

Steps to File a Fictitious Business Name

Research

• Check if the desired name is already in use by conducting searches through your local county clerk or secretary of state office.
• Some states provide centralized online databases (e.g., California’s Business Search), while others require local checks at the county level.

• Submit the required fictitious business name application form. The appropriate filing office depends on your state—some require state-level filings, others mandate county-level filings, and a few require both.
• Ensure all fields on the form are accurate to avoid rejection.

• In certain states, like California and New York, you may need to publish your fictitious business name in a local newspaper. This ensures public notice of the business operating under the fictitious name.
• The publication process typically requires multiple appearances over consecutive weeks and proof of publication to be filed with the appropriate office.

• After filing, verify that your submission has been processed and approved. Some offices provide online status checks, while others may notify you via mail.

Filing Fees and Deadlines

Filing Fees

• Fees vary widely across states and counties, typically ranging from $10 to $150. For example:
• Filing with the Los Angeles County Clerk costs $26 for a sole proprietorship, while the Texas Secretary of State charges $25 for state-level filings.

• Renewal timelines also differ. In California, fictitious business names must be renewed every five years, while in Texas, there is no renewal requirement.
• Failing to renew can result in penalties or loss of the ability to operate under that name.

State vs. Local Filing Requirements

State-Level Filing

• Some states, such as Texas and Florida, allow or require filing directly with the secretary of state. This centralized approach simplifies the process for businesses operating across multiple counties.

• In states like California, filings must be made at the county level, typically with the county clerk’s office where the business is located.
• Local filings may also require additional steps, such as publication in a newspaper local to the business.

• Certain jurisdictions require both state and local filings. For example, businesses in New York City must file with the New York County Clerk but may also need to meet state-level requirements if operating outside the city.

Important Note

Filing requirements, fees, and processes differ significantly by location, making it essential to research the specific rules for your state or county. To simplify this process and ensure full compliance, consider partnering with RASi for business name services. Our experts handle the complexities of filing fictitious business names, tracking deadlines, and managing renewals, so you can focus on running your business with confidence.

Conclusion:

Make Your Business Name Work for You A properly filed fictitious business name statement ensures your business is visible and operating under a recognized name. By establishing a clear identity, you make it easier for clients to discover your services through online searches and other channels. RASi takes the guesswork out of filing a statement, managing every detail from start to finish so your business can focus on growth. Contact us today to see how we can help you stay compliant and connect with your clients more effectively.