Filing a Fictitious or Assumed Name in Virginia

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 What Is a Fictitious Name in Business Law?

In Virginia, a fictitious name is an invented name that a business uses instead of its legal name. Usually, a business, whether it is a sole proprietorship, a partnership or a corporation, formulates a fictitious name for itself for branding and marketing purposes. Fictitious names are also referred to as “assumed names.” They are usually presented as “t/a” meaning “trading as,” “dba” meaning “doing business as,” or “aka” meaning “also known as” names.

Under state business law, legal business names are the ones used by a business to register its legal status with the state in which it does business. It is also used to obtain a tax identification or employer identification number from state and federal taxing authorities.

When a business selects its legal form and registers with the state of Virginia, it must make sure that its business name is not already being used by another business in the state. Before filing the necessary paperwork, a hold can be placed on the business name that it wants, if it is available. If it is not available, a business would have to choose another business name.

Of course, a business and its name are not official until its business formation paperwork has been filed and accepted by the state.

Unlike legal business names, fictitious names are not legally required to include a designation signifying its legal status, e.g., “Corp., LLP, or Inc.” A Virginia lawyer consultation would help a person understand the difference between a fictitious name and the legal name of a business and how to create a fictitious name.

What Is the Difference Between a Fictitious Name and a Trade Name in Virginia?

A fictitious name is the name under which a business operates that is different from its legal name. It must be registered with the Virginia State Corporation Commission (SCC), if the business is a corporation or an LLC.

If a business uses a name in its dealings with the public that is different from its registered legal name, the public is entitled to know who actually owns the business. That is why Virginia law requires the filing of a fictitious name statement with the Virginia SCC.

A trade name is a name under which a business sells its products or services to its customers. It might be the same as the business’s fictitious name or not. A trade name does not have to be registered with the SCC unless it is a fictitious name. Usually, a trade name is selected because it is appropriate for branding purposes. Again, it might be the same as a business’s fictitious name.

What Is an Example of How a Fictitious Name Works?

Sometimes on legal documents, a legal name and a fictitious name would be connected; for example, John Smith might select a fictitious name of “Smith Enterprises.” He is in the business of leasing construction equipment as a sole proprietor, so he selects a trade name of “Smith’s Equipment Rentals.”

He might use “Smith Enterprises d/b/a Smith’s Equipment Rentals” in most legal documents, e.g., its business lease agreements. If the registered business name and the name a business uses as a trade name are the same, the business does not need to file a fictitious name statement.

How Do I Register a Fictitious Name in Virginia?

Filing a fictitious or assumed name is done by submitting a form to the Clerk’s Office of the State Corporation Commission (SCC) as follows:

  • File the fictitious name form online at https://cis.scc.virginia.gov/ or submit a paper form to the Office.
  • Pay the $10.00 filing fee.
  • Be sure to use the correct form:
    • If the entity filing the form has a business in the records of the SCC, they want to use the following form: Certificate of Assumed or Fictitious Name – Business Conducted by an Entity.
    • If the entity does business as a sole proprietorship, they should use the following from: Certificate of Assumed or Fictitious Name – Business Conducted by an Individual.

As noted above, if a business is an LLC or a corporation, it must register a fictitious name with the SCC.

What Legal Issues Should Be Considered When Using a Fictitious Name in Virginia?

The main legal issues involved in using a fictitious name would be complying with all legal requirements and avoiding conflict with other business entities about such issues as trademark laws and any other intellectual property issues.

In Virginia, it is a misdemeanor criminal offense to use a fictitious name without registering it. Conviction could lead to payment of a maximum fine of $2500 or spending time in jail or both. Also, the business owner would not be allowed to maintain any action in any Virginia courts. So these consequences are quite severe and it clearly pays to register a fictitious name as Virginia law requires.

Of course, a business always wants to make sure that it has complied with all the requirements of Virginia law, including both state and local registration and business licensing regulations. A business should have a legal business name. A consultation with a Virginia lawyer about local regulations in the city and county in which they do business would inform them about local requirements, such as the possible need to get a local business license.

Having a fictitious name or a trade name may also be a good idea for most businesses. A trade name would be the name of a business’s public face, a name that is memorable for customers. For example, the sole owner of a restaurant may want to do business under a fictitious or trade name that gives their restaurant maximum appeal for potential customers.

One advantage of a trade name is that it does not have to be unique, although a business must be careful not to infringe on the trademark of any other business or otherwise violate trademark laws. Doing business with whatever name a business’s owners believe is memorable and suitable for the image the owners want to project is clearly a goal for most businesses.

Another role for fictitious and trade names is to use them when a business wants to introduce a new product or service or even an entirely new type of business, but the owners do not want to set up a new company. They can introduce this new business project using the same legal name and business form, but a different fictitious and/or trade name.

One advantage of registering a trade name is that the business can accept payments that are addressed to either its legal business name or the business’s trade name. This makes it easier for suppliers and customers to render payments.

Of course, a business always wants to avoid engaging in unlawful business practices, such as

Do I Need a Lawyer for Help With Fictitious Name Issues in Virginia?

If you are planning to start a new business or if you want to venture into new product or service lines with your existing business and new names, you want to consult a Virginia business lawyer. Your lawyer can review your plans and help you choose the best legal form for your business as well as the best legal and fictitious or trade names.

Your lawyer can make sure that you get started right by complying with all Virginia requirements for registration and licensing, both at the state and local levels. Your lawyer can ensure that you do things right and are able to brand and market your business for the greatest success.

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