Pros & Cons of Fictitious Business Names for Sole Proprietors
If you're thinking of starting a business for yourself and have no plans to have employees or partners, you kind of have an advantage in that you don't have to create what's called a fictitious business name. However, many sole proprietors still do that anyway. There are some definite benefits that come with having a name other than your own standing between you and customers, but sometimes it can seem like an unnecessary step. If you are interested in potentially having a fictitious business name, read on to find out if one would suit your business' needs.
More Descriptive
A fictitious business name is going to be more descriptive than just using your own name. "John Q. Public" doesn't tell customers what he does, but "Public Content Writing" certainly conveys what his business encompasses. This is helpful if you plan to find clients by setting up a website. While you could always add tags and metadata that describe your business, you could get more responses if your entry in the search results immediately stated what you do in the main line, and not just in the descriptive text.
Anonymity Layer
Using a fictitious business name that does not contain your name also helps maintain a layer of anonymity, though this could be seen as both good and bad. The good is that if your card gets lost, for example, your name isn't floating around with a phone number, something that could result in harassment or ID theft.
The bad side is that the anonymity could be seen as a way to avoid responsibility if something goes wrong with one of your products or services, but you can take care of that by properly registering the name with your county or secretary of state's office. If you're unsure how to register the name, you can contact your state's small business association or talk to a lawyer who practices business law.
Extra Registration
Speaking of that registration, using a fictitious business name also means you have extra paperwork to go through. You are required to register that name and pay an additional fee. In addition to that, you have to ensure no one else is using the same name for their business, something that can take time to research. If you don't want that extra work and you're fine with using your own name, you're not required to have a fictitious business name at all.
Consistency
Creating and registering a fictitious business name also has a big advantage when it comes to consistency. If you work under your own legal name, and you get married and change your name, you don't have to worry about notifying the business office of the city or county in which you work. Nor do you have to contact past and present clients to let them know about a change in the name, unless you just want to let them know what you're personally called now.
If you are still unsure as to whether or not a fictitious business name would benefit you, try talking to a business law specialist. He or she can help you work through your business plan and see if taking the step of creating a business name will be good for you. Contact services like Souders Law Group to learn more.
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