A fictitious name in business law is also known as a doing business as (DBA) name. A DBA name may also be referred to as an assumed name or a trade name.
This fictitious name is different from the personal name of the owner of the business or the registered name of the corporation or partnership. The term DBA is used for the name of a business that is used for its operations, but it is not the business’s legal name.
Fictitious names can be helpful to owners of Pennsylvania businesses who operate more than one business. Each one of the businesses is able to have its own DBA name that is related to its specific services or products, even when the businesses are all linked to the same owner or entity.
Suppose, for example, that a business called ABC Company owns a chain of restaurants, a bookstore, and a software company. The ABC Company can operate each of these businesses under separate names instead of operating all of them under the ABC Company name.
Having each business with a separate DBA name, such as Bob’s Burgers, Great Books, and Innovations Software, will allow each one to establish its own brand identity as well as be more appealing to customers.
Another use of DBA names for businesses is in a franchising agreement. For example, suppose ABC Company owns a franchise of a national fast food chain. Instead of operating under the name of ABC Company, the franchise can do business under the name of the national chain name.
When a business owner is considering using a fictitious name for their Pennsylvania business, it is very important to have a Pennsylvania lawyer consultation. This will help make sure that the process is properly completed and the business is following all business licensing regulations.
Difference Between a Fictitious Name and a Trade Name in Pennsylvania
There is a difference between a trade name and a fictitious name in Pennsylvania. A trade name must be distinguishable from other trade names.
Fictitious names, in contrast, do not have to be unique. They also do not provide the user of the fictitious name with any type of exclusive rights.
To find out more about using fictitious or trade names in Pennsylvania, it is important to reach out to a Pennsylvania lawyer. This can also help an owner avoid engaging in any unlawful business practices.
Example of How a Fictitious Name Works
When a business owner is filing a fictitious or assumed name, they must follow certain steps. To further understand the concept, it may be helpful to review an example.
Suppose that Tom Brown owns a sole proprietorship. He would like to run his business under the name of Brown’s Burgers instead of using his name. Brown’s Burgers is a fictitious name because it is not a legally registered corporate name or his legal name.
In the majority of states, including Pennsylvania, a business owner has to file and register a fictitious name. This is usually done through a county or state agency and often requires the owner to pay a fee.
Although the exact steps that a business owner will have to take can vary by location, generally, the following steps are required:
Step 1: Choose a Fictitious Business Name
A fictitious business’ name needs to be unique, easily remembered, and reflect the nature of the business.
Step 2: Conducting a Name Search
A business owner should search potential names that they are thinking of using to make sure they are not already being used in the area. It is also important for a business owner to run a search in the U.S. Patent and Trademark Office’s (USPTO) database to make sure that the name is not already trademarked.
Step 3: Name Registration
If the name a business owner chooses is not already being used, it should be registered with the appropriate state or county agency. This should be done with the Pennsylvania Department of State.
This process can be completed by mail or online. The business owner will usually have to pay a fee.
Step 4: Paying Required Fees
The fee for registering a fictitious business name in the State of Pennsylvania is $70.
Step 5: Publication of the Fictitious Name
Pennsylvania does require publication of a fictitious business name in two newspapers in the county where the business is operating. One of the newspapers has to be a legal newspaper if there is one in the county.
The publication has to include the business’ fictitious name, the principal address of the business, the name and address of the individual filing, and a statement that an application is being filed or was filed.
Step 6: File Proof of Publication
A business owner does not have to file proof of publication with the Pennsylvania Department of State. However, it is still important to keep a record of the publication.
Step 7: Use the Name Consistently
After registering a fictitious name, it should be used consistently in all dealings of the business to maintain clarity as well as to avoid legal issues. This means the name should be used for any advertising, online presence, and written documents.
Step 8: Renewing the Fictitious Name
In Pennsylvania, so long as the business continues to operate and is in good standing, it does not have to renew the fictitious name.
How To Register a Fictitious Name in Pennsylvania
To register a fictitious name in Pennsylvania, an individual must search the Pennsylvania state business registry to ensure the name is available. Then, the owner must file a fictitious name registration through the PA Business One-Stop Shop or by mail with the Department of State.
Legal Issues To Consider When Using a Fictitious Name in Pennsylvania
There are many different legal issues for a business owner to consider when they are using a fictitious name in Pennsylvania. A Pennsylvania attorney can give advice about all of the potential legal issues that may arise.
One important issue is trademark infringement. A business can be challenged under trademark laws if their name is too close to an already registered trademarked business name.
It is important for business owners to be aware that, if they register a fictitious name, it does not create a separate legal entity. It is simply an alias that is being used for an existing business entity.
This means that, if Tom Brown is the sole proprietor of Brown’s Burgers, he can be held personally liable for the obligations and debts of his burger business. If there are issues with his business, his personal assets, such as his home or car, may be at risk.
Do I Need a Lawyer for Help With Fictitious Name Issues in Pennsylvania?
Due to the fact that there may be important legal implications when you choose and register a fictitious business name in Pennsylvania, it is important to reach out to a Pennsylvania business lawyer for help with the process. Your attorney can help you throughout the process, which includes conducting name searches, avoiding trademark infringement, and helping with potential names.
Use LegalMatch for free today to find a Pennsylvania business attorney near you who can help you ensure the success of your fictitious name. It only takes about 15 minutes to complete the submission form online, and, in around a business day, licensed and prescreened Pennsylvania attorneys who can help and answer your questions will respond.
