What is a fictitious business name?

The term "fictitious business name" (or "assumed business name," "trade name," or "DBA" for "doing business as") is used when a business uses a name that's different from its legal name. For instance, if John O'Toole names his sole proprietorship Turtle's Classic Cars, the name "Turtle's Classic Cars" is a fictitious business name because it does not contain John's last name, "O'Toole."

If your business uses a fictitious business name, you'll need to register it with a government agency -- in most states, your local county clerk's office.

Do I have to register my business name?

If you're starting a corporation, LLC, or limited partnership, your official business name will be automatically registered when you file your articles of incorporation, articles of organization, or statement of limited partnership with your state filing office. However, if you will sell products or services under a different name, you must also file a fictitious name statement (sometimes called an "assumed" name statement) with the state or county where your business is headquartered.

Other types of businesses may also have to comply with fictitious or assumed business name requirements. Generally, any business that doesn't use its legal name as part of its business name must file a fictitious name statement with a government agency, usually the county clerk's office.

You may also want to take advantage of the extra protection that registering your name as a trademark can give you. While it's not required, registering your name as a trademark at the state and/or federal level can prevent other businesses from using a name that's likely to be confused with your business name.

Can I change my business name to include "Inc." or "LLC"?

Some people confuse choosing a business name with choosing a type of ownership structure, such as a corporation or limited liability company (LLC). But you can't just tack "Inc." or "LLC" onto the end of your business name and start calling yourself a corporation or LLC.

First you must form a corporation or LLC, and to do so you've got to follow certain filing procedures to register the new type of company with your state.