What's in a Name? Using a Fictitious Business Name

Charles Carreon

A sole proprietor can do business under a fictitious business name. For example, if you run a photo studio as a sole proprietor, you can register with the state to do business as “Beautiful Images.” While many people don't bother registering their fictitious business name, a bank would not generally open an account in the name of a fictitious business unless you provide them with proof that you have filed a fictitious business name registration with the secretary of state. Which secretary of state is that, you might ask? It is the secretary of state that runs the corporation commission in your own state. You can usually obtain the appropriate registration form from the secretary of state's website in your state. Once you have filed your fictitious business name statement, you can take that to your bank, and they will open an account in the name of your business, issuing checks imprinted with the name, and receiving deposits to your account of all checks made out to the fictitious name. That makes it a more professional transaction, because when someone pays their bill, you can tell them to make it out to “Beautiful Images,” rather than your name.

Using the fictitious business name does not change the nature of the business. A sole proprietor using a fictitious business name remains a sole proprietor. A partnership can also adopt a fictitious business name, and can give signature authority to all of the partners on the bank account.