Definition: A legal document showing the operating name of a company, as
opposed to the legal name of the company. In the case of a
corporation, a fictitious business name is any name other than the
corporate name stated in its articles of incorporation.
If you're starting a sole proprietorship or a partnership, you
have the option of choosing a business name or dba (doing business
as) for your businesses. This is known as a fictitious business
name. If you want to operate your business under a name other than
your own (for instance, Carol Axelrod doing business as Darling
Donut Shoppe), you may be required by the county, city or state to
register your fictitious name. Some states require dba or
fictitious business name filings to be made for the protection of
consumers conducting business with the entity. (Note: No fictitious
business name may include the words "corporation," "Inc.,"
"incorporation" or "Corp." unless it's a corporation registered
with the Secretary of State.)
Procedures for filing for a fictitious name vary among states.
In many states, all you have to do is go to the county offices and
pay a registration fee to the county clerk; they'll then provide
you with a fictitious name certificate. In other states, you also
have to place a fictitious name ad in a local newspaper for a
certain amount of time. The cost of filing a fictitious name notice
ranges from $10 to $100.
Your local bank may require a fictitious name certificate to
open a business account for you; if so, they can tell you where to
go to register. In most states, corporations don't have to file
fictitious business names unless the corporations do business under
names other than their own. Incorporation documents have the same
effect for corporate businesses as fictitious name filings do for
sole proprietorships and partnerships.