A simple definition of a fictitious name: A fictitious business call is one that does not use the enterprise proprietor’s call.
If you are doing enterprise underneath an assumed name, one extraordinary out of your name, you want to document a “fictitious name assertion.” This filing is required by way of regulation to attach the call of a enterprise to the commercial enterprise owner. It protects consumers because it lets in them to get records about the owner of a business enterprise if they have purchaser troubles or want to file a lawsuit.
Example: Susan Jones begins a catering enterprise and calls it “Catering Capers.” The business name is fictitious due to the fact she is doing commercial enterprise underneath an assumed name that does not become aware of her as the owner.
Where to File
Check together with your county clerk, the town where you may reap your enterprise license or your Secretary of State to find out in which you want to record to do commercial enterprise the usage of a fictitious call.
How Much It Costs
The filing price stages from $10 to $100; but, you could also be required to put up a declaration of motive to use a fictitious call in a local newspaper before you could report the fictional name assertion.
Be sure to check along with your county clerk earlier than running an advert. There are regularly regulations on what courses you may use for your fictitious name commercial, and you'll be required to encompass very particular information in the advert.
Once the assertion of reason has been posted in a newspaper (commonly for several consecutive weeks) you'll want to publish proof of the assertion ad to the county clerk or different submitting employer.
Fictitious Business Name Restrictions
Only organizations which have registered with the Secretary of State as a business enterprise (a separate submitting procedure) can use the terms “company,” included,” or any abbreviations for those phrases (i.e., “Inc.” or “Corp.”) in a business name.
If you're the use of a fictitious commercial enterprise name, maximum banks will now not will let you open a financial institution account till you have a commercial enterprise license or other proof that suggests you've got filed for a fictitious call.
Exceptions to Filing
Most states do no longer require a separate fictitious call filing for organizations until the call underneath which the company will perform isn't the same as the call below which the organization is registered.
Example: Bear Trackers, Inc. may not need to document a fictitious name assertion due to the fact they may be included. However, if Bear Trackers, Inc. does enterprise beneath another name like “Bear Enterprises” they would need to file a fictitious call declaration for the call that they are doing business below.
If you operate a name aside from your personal to do commercial enterprise, you may need to report a fictitious commercial enterprise call assertion (now and again referred to as “Doing Business As” or “DBA” statement).
Fictitious call statements are required for sole proprietorships and partnerships. Incorporated organizations might not want to file a fictitious call declaration unless they are doing business beneath a call different from the organization’s call.
In most states, you want to document a fictitious call assertion before you could get a business license or open a bank account.