The Facts

A corporation has a legal name, which is used to create and incorporate the business. The corporation must use this name on documentation, such as tax returns, permits and licenses. The name under which it conducts business is usually different and is called the "fictitious registration" or "fictitious title."

Benefits

The fictitious title is often more descriptive of the corporation's products or services than its legal name, so it's more memorable to prospective clients. Also, once registered, the fictitious title becomes exclusive to the corporation. One corporation may have several fictitious titles under which it conducts business rather than incorporating each individual enterprise.

Example

Adams Enterprises, Inc., may be the legal name of a corporation in the marketing and advertising sector, but this corporation can have multiple fictitious titles for its various pursuits, such as Advanced Advertising, Loco for Logos and Perfectly Printed.

Considerations

Fictitious title registration takes place at the local government level, and state regulations regarding fictitious titles vary by state, but most require that the fictitious registration be publicly advertised in one or more newspapers for a specified period.

Warning

Only legal corporations may use the words "corporation" and "incorporated" (and their corresponding abbreviations) in their fictitious registrations. A sole proprietor or partnership may not use those designations as part of their fictitious names. Likewise, unless a company is created as a limited liability corporation, it may not use "limited liability corporation" or "LLC" in its fictitious registration.

Source:

Business.gov: Doing Business As

Entrepreneur: How to Register a Fictitious Business Name

Nolo: Registering Your Business name