We Know: What's a Fictitious Business NameWhat is a fictitious business name?An individual who chooses to use a business name other than their legal name is using a fictitious business name. Also known as Doing Business As (DBA), tradename, or assumed business name, a fictitious business name gives an individual with more than one type of business flexibility without having to create a new business entity. Fictitious business names must be registered with a state government agency, usually the county clerk's office. How do you get a fictitious business name?With most states, the procedures for obtaining a fictitious business name are as follows:
Check with your local governmental agency for the procedures needed to obtain a fictitious business name. When is a fictitious business name necessary and how long is it good for?A fictitious business name must be registered with the government agency before the first business transaction, or within 40 days of the first business transaction. Fictitious business names require renewals every five years. Why does a fictitious business name need to be registered with the government agency?The primary reason for using a fictitious business name is accountability. Fictitious business name must be registered with a government agency. This action alone provides a paper trail if customers have a complaint against the company, preventing fraud. Registering a fictitious business name also allows parties to legally enforce contracts. Finally, banks will not allow businesses to open bank accounts if a fictitious business name has not been registered with the proper agencies. What is a trademark?When searching for a fictitious business name, trademark considerations come into play. Having a fictitious business name does not guarantee that the name is exclusive to that business only. Trademarking is a marketing strategy that prevents others from using your fictitious business name. |
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