| -- End Ad Box ---> | | | | business name for their operations to file a fictitious |
| A fictitious business name is a legal term that refers to | | | | business name statement for consumer protection |
| the name under which a business operates and | | | | purposes. |
| presents itself to the public. | | | | This also reduces the likelihood that two local |
| It is also known as Do Business As, trade styles, | | | | businesses would be operating under the same |
| or assumed business names. A fictitious business | | | | fictitious name. |
| name is distinct from the legally registered business | | | | One thing to remember though is that a fictitious |
| name. | | | | business name statement is not a substitute for getting |
| Companies with fictitious names give no indication of | | | | a trademark. |
| the business that is legally responsible for its | | | | A fictitious business name statement carries no legal |
| operations. | | | | weight where trademarks are necessary. |
| In the US, fictitious business names are often used in | | | | Filing for a fictitious business name is very easy. |
| conjunction with franchises. The franchisee operates | | | | Although each state may have different requirements, |
| under a legal name but operates its business under the | | | | generally a fictitious business name filings can be made |
| franchise’s brand name. | | | | by businesses or by individuals. |
| An example would be a Mc Donald’s franchise | | | | Typically, the following are applicable to a fictitious |
| with a legal name of ABC Foods. | | | | business name statement: |
| Operating under a fictitious business name gives the | | | | Fictitious business name filings contain the name of |
| company some benefits such as: | | | | the applicant, date of filing, the fictitious business name |
| The fictitious business name allows the use of a | | | | and address for the business. |
| typical business name without the need for an LLC, | | | | A name check to make sure that there is only one |
| corporation or partnership establishment. | | | | business with that name. The applicant must search |
| The company can use the fictitious name in its | | | | through a database to make sure that the name has |
| business phone listing, sales advertisements and | | | | not been used. |
| contracts. It also allows a business to open a bank | | | | The form has to be filed with a fee ranging from |
| account and collect payments under the business | | | | $10 - $50. |
| name. It gives the business legal sanction to represent | | | | In California, filing for a fictitious business name also |
| itself under a fictitious name. The filing process also | | | | requires that a notice of the fictitious name |
| notifies other companies that the business have used | | | | Majority of banks also require for a fictitious |
| a particular business name for its operations. | | | | business name to be registered before they allow |
| The business may also opt to conduct a single | | | | transactions. |
| business concern under more than one name without | | | | Filing for a fictitious business name statement is very |
| setting up a separate business. This would result in a | | | | simple and is an inexpensive process that allows a |
| lot more savings compared to filing and maintaining | | | | company to get a host of benefits for minimal costs. |
| multiple businesses at a time. | | | | For more help, consult a business attorney for |
| Most US states require businesses that use a fictitious | | | | assistance. |