Understanding Fictitious Names
A fictitious name is an alias, assumed name, or pseudonym. It differs from a person’s true, legal name. Fictitious names are used to conceal identity or conduct business under another name. Most states require registration of fictitious business names.
Purpose and Use of a Fictitious Name
What is a fictitious name used for? A fictitious name is an alias or assumed name used to conceal identity or conduct business under another name.
DBAs and Corporations
When would you use a DBA? Use a DBA when a business operates under a name other than the owner’s legal name. DBA stands for "doing business as". A DBA allows a business to use a more creative, compelling name than the owner’s dull, legal name.
What’s the difference between a fictitious name and a corporation? A corporation is a separate legal entity from its owners. A fictitious name is just an alternate name; it does not create a separate legal entity.
Legal Considerations and Benefits
Filing for a fictitious name puts the business’s name and owner on public record. This helps inform consumers and protects them from unscrupulous businesses trying to hide their poor reputations.
Sole proprietors can use fictitious names for marketing flexibility without the legal formalities of an LLC. Fictitious names offer less protection than LLCs but provide a simple, flexible, low-cost branding option.