A fictitious business name is one that’s legally used to…
A fictitious business name is one that’s legally used to identify a business entity but doesn’t specify the actual person that owns the business. Such names are used for separate businesses operated by the business owner without having to register another name.
This article discusses the concept of a fictitious business name, its benefits, and its requirements.
What Is a Fictitious Business Name?
A fictitious business name, also known as “Doing Business as,” is a business’ legal name used in place of the owner’s legal name. For corporations, a fictitious business name is any name different from the corporate name stated in its articles of incorporation. Fictitious business names are ideal when more than one person owns the business. It is also typical for marketing purposes or to hide the owner’s name.
Such a name has a legal existence separate and distinct from a person or corporate entity. A fictitious business name does not include the full name of the owner, the names of its partners, or the nature of the business.
Examples of Fictitious Business Name
“Andrew & Sons” is a fictitious business name. The owner’s surname is left out, and the words following the owner’s first name suggest other owners that are not specified. “Andrew Thompson Appliances” is not fictitious because “Andrew Thompson” is the owner’s legal name.
Other examples of fictitious business names are:
- James Lionel operating his construction company under the name “ABC Construction.”
- Williams Spikes, doing business as “Food corner.”
Benefits of a Fictitious Business Name
Select a fictitious business name if you’re starting a new business and want to hide your identity when conducting business transactions. A fictitious business name helps prevent trademark infringement that could lead to a costly lawsuit.
Using such a name is how business owners protect their identities and avoid presenting their real names to the public. It provides the business with a level of privacy and autonomy. For example, members of a rock band may not want their identities to be published in the local newspaper.
Fictitious business names are ideal when more than one person owns a business. Instead of listing all the names of its partners and owners, a fictitious business name is more appropriate.
Additionally, fictitious business names can be used indefinitely. A business owner can venture into a different industry but use the same name as their current business. For example, Philips & Associates doesn’t specify the line of business and can serve any other company.
Requirements for a Fictitious Business Name
Creating a fictitious business name is the responsibility of the business owners. You can use the name to convey your business message or represent your personality. A long or difficult name can negatively affect the business. If the name has no meaning at all, it can be confusing to prospective customers. It would be best to use an intriguing name that’s short, easy to remember, and attracts customers.
You’ll need a Fictitious Name Statement if you’re doing business under an assumed name. This is required by law to link the name of a company to the business owner. You’ll need to register the business with a county or district attorney. Upon registration, a Fictitious Business Identification Number (‘FBIN’) is assigned, which is only eligible to the business owner.
A Fictitious Business Certificate is a legal document showing the operating name of a company rather than its owner’s legal name. This certificate issued upon registration of a fictitious business name indicates a business’ legal rights to all its customers, vendors, suppliers, and contractors. Fictitious business names have legal standing, which means they will be recognized as separate legal entities and traded on the public market.
A fictitious business name is ideal when the business owner wants to use a separate name from their name. The typical use of a fictitious business name is to prevent consumers from associating with or knowing the business owner. Such names provide privacy to a business owner and can be used for separate businesses owned by the same person.
Frequently asked questions
What is a fictional company?
In films or television, fictional companies are often used where there are copies of the company or some chance of prosecution from its name.
Is a fictitious name a sole proprietorship?
FBN (fictitious business name) is a trade name for a sole proprietor. If they do business as DBAs (also known as assumed names), they may also be called they. Most states have rules regarding FBNs, and the first rule is that the name must be registered.
What is a fictitious name used for?
A name that was deliberately chosen or adopted is a fictitious one. A business may have a fictitious business name, for example. An unnamed person may use fake names to conceal their identity or file a lawsuit against someone whose name is unknown to the plaintiff.
Is a fictitious legal entity?
Having a fictitious name is a name that goes beyond your proper legal business entity name that you obtain permission from the state (or county) to use at all times during business? Also, you may find the fictitious business name Doing Business As (DBA).
What is a fictitious business name example?
A Fictitious Business Name (“FBN”) is a business name that DOES NOT include the surname of the individual owner as well as EACH of the partners. The nature of the business is not clearly evident from the name. For example, doing business under the name “Eisenberg & Yandall Associates” OR “Esenberg et Yandll Sons”.
What is the benefit of a fictitious business name?
Advantage: Low organisational cost Compared to the expense of creating an entirely new business entity, such as a corporation or limited liability company, the fictitious name sets up the alias of your business inexpensively — for about.
Is using fictitious name allowed in court?
False names masquerading as real names. To establish a crime, evade a judgment or cause damage, a person shall be subjected to a penalty of criminal prosecution.
Is a fictitious name the same as a DBA?
A DBA lets the public know who the real owner of a business is in the USA. fictitious business name or assumed business name is also a DBA. In fact, it originated from consumer protection, and dishonest business owners couldn’t avoid legal trouble through operating under a different name.
What is the difference between a fictitious name and a corporation?
A legal document showing the operating name of a company, rather than its legal name. Corporations use fictitious business names to identify their businesses, except as described in their articles of incorporation.
What is the difference between a registered name and a fictitious name?
Trade names can also be referred to as fictitious names or DBAs (doing business as). As long as the registered name is not the same as the entity’s registered name, a registered business entity may file for Registration of Trade Name (Form T-1).
Why is it called fictitious business name?
A fictitious business name is a name that is used by a natural person or entity to conduct business under such a designation, but different from its legal name. In the case of corporations, the fictitious business name is any name different from the one in the articles of incorporation.
What is a fictitious brand name?
A fictitious name means any assumed name, style, or designation other than the proper name of the entity that uses such a name. A fictitious name signifies a name assumed by a general partnership.
Do I need a DBA for my LLC?
LLCs do not require a DBA. As your company name becomes your company’s name when you register an LLC, eliminating the need for a DBA. However, you may sometimes use a DBA for your LLC to expand and operate parts of it under a different name than your original business name.
What is another word for fictitious name?
- false name
- assumed name
Is a fictitious name the same as an LLC?
A LLC is able to operate under its formal name or as a fictitious name or both. If you are registering and maintaining a DBA in your state and locality, you should always sign contracts on behalf of the LLC, not its DBA.