What does a made-up name mean? A fake name is when someone registers a company name to let others know who owns it.
What does a made-up name mean? A fake name, commonly known as a DBA or “doing business as” name, is when a person registers a business name with the city or county to identify who owns the firm.
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Concerning the Fictitious Name Procedure
A registered or legal name identifies your company and is used for legal reasons by federal and state taxation authorities when submitting your business taxes, as well as banks and other financial organisations. A trade name is anything that is used in advertising or for business reasons. While the word “fictitious business” may imply a company that engages in unlawful activities, this is not the case. In certain cases, the phrase is used to refer to the registration of enterprises.
The necessity to register a fake name is determined by whether the firm will operate under an assumed identity
State Law and Fictitious Names
A sole proprietorship that does not use the owner’s legal name is normally required to register the name with the Secretary of State’s office. In certain places, such as Florida, a legal name may be either a person’s given name or a duly registered company name. The single proprietor’s given name, trademarks, and service marks may be included.
While some single proprietorships, such as freelancers, use their own name, others may adopt a more creative moniker. This will need registration. There are various differences in whether a fake name should be filed at the county or state level. There are also state differences in who is accountable for registering a fake business name depending on how the firm is named.
There are two major reasons to register a bogus business name. By registering the company, the owner may be located in the event of a problem with the firm. A company owner who has a signed contract and a registered business name may also better enforce a contract.
The Purpose of Using a Make-Believe Name
False names are used for a number of reasons, including:
Choosing a company name.
For legal reasons.
Advertising.
Identification.
A firm called “SHADOW FAX” is an example of identification. The legal name designation and the one recorded with the state is the LLC. You may not use the acronym “LLC” in your advertising. You might also opt to operate under a brand name, such as “Fastest Faxing.” Because the company does not bear your name, a fake name must be registered.
Fictitious names may also be registered by LLCs, partnerships, and companies. You may or may not be excluded from the regulations that require sole proprietorships to register fictitious names, depending on the state of registration.
At the end of the day, if you use a trade name that differs from the registered name of the firm, the public has the right to know who is in control or operating the business. A statement like this is often published in a local newspaper or other permitted medium and enters public record, notifying the public that the trade name in use is linked to another legal name for the firm.
Reasons for Using a Make-Believe Name
Owners of businesses may be readily located.
If a customer has a problem, they may contact the proprietor of a falsely named firm.
Other companies and start-ups may check to see whether the name they wish to use is available.
You cannot sign contracts or enforce agreements on behalf of your company if it operates under a non-fictitious name.