What is a fictitous business name?

A fictitious business name is the name of your business, if different from your own. If you are operating the business as XYZ Desktop Publishing, for example, you are required to register the fictitious or assumed business name at your city or county clerk’s office.

Registering your fictitious business name is important for a number of reasons. Banks look for proof that you have properly registered the name when opening a business account. An even more important consideration is that you won't be able to enforce any contract that you sign under an unregistered name. An unregistered business name also leaves that name open for use by other businesses, even your competitors, which may jeopardize your business.

Some states require that the fictitious business name be registered with the Secretary of State or other state agency. Procedures vary, but the process is fairly easy. In most states, you'll register it at the county level. Be sure to call your county clerk’s office to find out its procedures, requirements and fees. Filing fee ranges from $10 to $50.

Los Angeles county, for example, requires that the fictitious name be announced in a newspaper publication ad and that the applicant submit proof of publication, resulting in a longer processing time of about three weeks. On the other hand, Fairfax County in Virginia checks your fictitious name when you register your business and completes the process in less than 30 minutes. Maryland requires businesses to call the Department of Assessments and Taxation to reserve a business entity name prior to submitting the appropriate organization documents or forms.