{"id":8445,"date":"2024-07-29T08:44:10","date_gmt":"2024-07-29T13:44:10","guid":{"rendered":"https:\/\/www.atom.com\/blog\/?p=8445"},"modified":"2024-07-22T04:38:53","modified_gmt":"2024-07-22T09:38:53","slug":"what-is-a-fictitious-business-name-fbn","status":"publish","type":"post","link":"https:\/\/www.atom.com\/blog\/what-is-a-fictitious-business-name-fbn\/","title":{"rendered":"What is a Fictitious Business Name (FBN)?"},"content":{"rendered":"\n

Did you just come across the puzzling phrase \u201cFictitious Business Name\u201d and you\u2019re unsure of what it means?  Perhaps you casually read or heard the seemingly oxymoronic phrase somewhere, leaving you with a few questions. <\/p>\n\n\n\n

\u201cWhat does it refer to exactly? <\/em><\/p>\n\n\n\n

\u201cIs it even legal?\u201d<\/em><\/p>\n\n\n\n

\u201cIs using a fictitious business name not a violation of one or more statutory business regulations?\u201d<\/em><\/p>\n\n\n\n

Take a deep breath – there\u2019s no need for concern. A fictitious business name is perfectly legal and a lot more common than you might think. Let\u2019s find out what a fictitious business name is, and when to use one.<\/p>\n\n\n\n

What is a Fictitious Business Name?<\/strong><\/h2>\n\n\n\n

A fictitious business name (FBN) is the secondary name you use for your business if it\u2019s operating under a name other than its legal name. FBNs allow business owners or entities to operate under alternative, more market-friendly names.<\/p>\n\n\n\n

If your company or business name is different from what is on your tax returns, you are using a fictitious business name. It\u2019s also called assumed business names or \u2018doing business as\u2019 (DBA).<\/p>\n\n\n\n

For example, if you are a Sole Proprietor offering digital marketing services to your clients, your name might be the legal name of your business. But Allan Smith Marketing isn\u2019t that eye-catching (no offense Allan), so you decide to market your service under a different name: Hot Knife Marketing Ninja; this new name is called Fictitious Business Name.<\/p>\n\n\n\n

What is the Difference Between a Fictitious Business Name and a Legal Name?  <\/strong><\/h2>\n\n\n\n

A legal name is an official name the government recognizes as it appears on identification documents like passports, driver\u2019s licenses, birth certificates, etc. For businesses, it\u2019s the name that appears on legal documents like tax filings.<\/p>\n\n\n\n

A fictitious business name or DBA is the name you adopt if you want your business to operate under a different identity from its legal name. In its simplest form, a fictitious business name is the new name you adopt for your business. <\/p>\n\n\n\n

There\u2019s nothing fraudulent about FBNs so long as you follow appropriate state guidelines; it\u2019s just for branding purposes.<\/p>\n\n\n\n

Can You Choose Any Name for Your Fictitious Business Name?<\/strong><\/h2>\n\n\n\n

No! You can\u2019t choose any name for your fictitious business name. There are regulations, restrictions, and guidelines to follow when selecting and registering an FBN. These requirements and rules differ across state and county lines.<\/p>\n\n\n\n

So, before you choose any name as FBN, you need to check the county clerk or record office of the state or county where the business operates.<\/p>\n\n\n\n

You also need to check with the U.S. Patent and Trademark Office to ensure that the name is not already in use and that you can use the name without restrictions.<\/p>\n\n\n\n

On your own, you can carry out a quick Google search to see if another company is already branding the name you have in mind.<\/p>\n\n\n\n

When Should You Use a Fictitious Business Name?<\/strong><\/h2>\n\n\n\n

I thought you would never ask! There are several use cases for an FBN.<\/p>\n\n\n\n

First off, if you run a sole proprietorship or general partnership and want to operate under a name different from your personal name, a fictitious business name would come in handy.<\/p>\n\n\n\n

Secondly, an FBN enables you to market your business or company under a name that\u2019s more creative, attractive, and appealing to your audience or customers.  <\/p>\n\n\n\n

Another use case is if you have a corporation or LLC with a registered name, but want to launch a new product in a different or niche market. With a fictitious business name, you can adopt a market-friendly name for an effective launch. <\/p>\n\n\n\n

In most cases, states make it mandatory to file fictitious business names because it enables the general public to know the real owners of companies. In other words, filing an FBN places you and your business name on public record.<\/p>\n\n\n\n

But you may not need an FBN if you are using your legal name as your business name.<\/p>\n\n\n\n

For instance, the famous digital marketing and SEO expert Neil Patel may not need an FBN since he uses his legal name to run his business.<\/p>\n\n\n\n

How to Choose a Fictitious Business Name<\/strong><\/h2>\n\n\n\n

Choosing a fictitious business name is no different from naming a business. Other than a few constraints here and there, the same rules apply.<\/p>\n\n\n\n

Luckily for you, we have already written an extensive guide on business naming<\/a>. Check it out, and you will learn all you need to know about choosing a fictitious business name.<\/p>\n\n\n\n

Here are a few tips on how to choose a fictitious business name:<\/p>\n\n\n\n

1. Define the Purpose of the Fictitious Name<\/strong><\/h3>\n\n\n\n

The general rule of thumb to apply is to define the purpose of your business. Defining your business purpose will guide you in choosing the perfect FBN.<\/p>\n\n\n\n

For instance, if you need an FBN to create a better company image, then the name should tell your audience about your products or services. If your business name is Smith Systems LLC, an FBA that better captures your audience\u2019s imagination, and tells them what you do: Fluffy Cloud Computing, Silver Analysis, or Quantum Quake.<\/p>\n\n\n\n

Whatever your focus is, try to reflect it in the fictitious business name.<\/p>\n\n\n\n

2. Brainstorm as Many Ideas as Possible<\/strong><\/h3>\n\n\n\n

Staring at the blank page is intimidating, but you have to be creative with your FBN. And the best way to do that is to brainstorm as many ideas and concepts as possible. Use naming trends and categories to guide your ideas, these can include:<\/p>\n\n\n\n