Q:
Do I need to Register My Business Name?
A:
If you are not using your legal name (or a formally organized entity’s name), you probably need to register your business name with the government. This is typically referred to as an assumed, fictitious, or trade name.
Governments recognize that people and businesses have all sorts of reasons for adopting different names for business purposes. But governments also need to be able to identify businesses and figure out who exactly is responsible for different ventures. Thus, you can easily adopt a fictitious name by submitting an application and paying a small fee.
These requirements vary among states and local jurisdictions. However, the basic rule is simple: you can do business under your individual legal name OR the name of a legally organized business entity (corporation, LLC, etc). If you want to do business under any other name, you should contact a business attorney in your area to determine the legal requirements.
In Virginia, a fictitious name must be registered with the Clerk of the Circuit Court for every locality in which you do business. Most localities will process the fictitious name filing for around $10.
Practically speaking, the fictitious name requirements could be burdensome, if you do business in several localities. It would be a lot of paperwork to file names in every locality in a state. Thus, you might be better off formally changing your business name with the state.
This is a bi-weekly feature at Home Office Warrior. Now is your chance to send questions to an experienced attorney. Submit your questions to Andrew at andrew@homeofficewarrior.com or leave your comments here.
Disclaimer: Andrew Flusche is a licensed Virginia attorney, but these posts do not constitute legal advice, nor do they create an attorney client relationship. For legal advice, consult an attorney licensed in your jurisdiction.
I agree. This is a requirement for a lot of different reasons. First, people who want to sue you and to file things against you, need to be able to find you and to identify what type of organization under which you are operating. If you are operating under an assumed name, you have to notify people of this fact. Second, the taxing entities in many states use this to determine what entities or people to send tax bills for things like office furniture, computers and other office supplies and furnishings. Third, many entities, such as banks, cable providers, insurance companies, and the like use assumed names to charge you more for the same services. That is the reason that I do not advocate operating under an assumed name. If your name is Billy Bob Jackson, then just be good ‘ol Billy Bob. You do not have to be B. B. Jackson & Associates, or Action Jackson Industries, or the World’s Most Freakin’ Greatest Company Ever. You can be Billy Bob Jackson with an identifier such as — Billy Bob Jackson, Lawyer; of Billy Bob Jackson, Virtual Legal Assistant; or Billy Bob Jackson, Insurance Agent; or Billy Bob Jackson, Mortgage Consultant. First, in the world of personal services, are you not really selling yourself? The flamboyance is for your benefit and not the people to which you might be selling your services. In fact, it is probably confusing. If your objective is to sell yourself, then you do not need to be selling yourself as XYZ Services or some such moniker. You need to be selling yourself — working to give yourself and your name some value. You can leave all of these assumed names certificates behind, keep things simple and free of some taxes and keep your costs lower.
Chuck - Absolutely!! This is one reason why my law firm isn’t called “The Law Offices of Andrew Flusche” or some other name. I’m Andrew Flusche. I’m an attorney. I’m the only guy in my home office. So my checks and letterhead say “Andrew Flusche, Attorney at Law.”