Fictitious Business Name

In general, using a fictitious business name is not prohibited.   It can be allowed provided a statement of its use is filed pursuant to the California Business and Professions Code.

Now you may ask, what is the importance of using a fictitious business name? The answer is actually very simple.  It is sometimes important to use a fictitious business name for the corporation’s own protection.  Just as the persons transacting business with the corporation are protected by our business laws, your corporation has its rights and privileges also given by our business laws for its own protection.  As long as you don’t use the fictitious name in doing injustice to other persons who transact with the corporation, there can be no problem using a fictitious name for your business corporation. What about the filing of a statement? What is its purpose?  Well, as for the filing of a statement of the use of a fictitious name for the corporation, its purpose is to apprise other persons that the name being used is not the actual name registered.  This will show good faith on your part and will eliminate any doubt that the use of the fictitious name is intended to defraud other persons.

But aside from the filing of a statement, there are still additional requirements to be complied with in using a fictitious business name. In fact, as a businessman, you are always presumed to know all of these requirements.  However, although there is this presumption, it is still better to inquire and consult with an expert business lawyer to be updated of the ever changing requirements set forth by law in using a fictitious business name. You definitely would not want any legal obstacle to come along your way in the operations of your business.  So, to avoid any legal complications, we advice you to consult with the expert business lawyers that you can find in this website.