If you’re starting a sole proprietorship or a partnership, youhave the option of choosing a business name or dba (doing businessas) for your businesses. This is known as a fictitious businessname. If you want to operate your business under a name other thanyour own (for instance, Carol Axelrod doing business as DarlingDonut Shoppe), you may be required by the county, city or state toregister your fictitious name. Some states require dba orfictitious business name filings to be made for the protection ofconsumers conducting business with the entity. (Note: No fictitiousbusiness name may include the words “corporation,” “Inc.,””incorporation” or “Corp.” unless it’s a corporation registeredwith 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 andpay a registration fee to the county clerk; they’ll then provideyou with a fictitious name certificate. In other states, you alsohave to place a fictitious name ad in a local newspaper for acertain amount of time. The cost of filing a fictitious name noticeranges from $10 to $100.
Your local bank may require a fictitious name certificate toopen a business account for you; if so, they can tell you where togo to register. In most states, corporations don’t have to filefictitious business names unless the corporations do business undernames other than their own. Incorporation documents have the sameeffect for corporate businesses as fictitious name filings do forsole proprietorships and partnerships.
