Is your company in the witness protection program – using a name in the marketplace that is different than your company name (commonly known as an assumed name, fictitious name, doing business as, trading as or d/b/a”)?
Some companies file a really boring name with the North Carolina Secretary of State, but use a really exciting name to answer the phone and market. This may happen with a franchise, where your name at the Secretary of State is GZ #634, LLC, but your marketing is all done under the name and slogan “Glazzle – providing Glamour and Marketing Razzle Dazzle for your Business.”
Sometimes sole proprietors or partnerships technically have the name of the owner(s) but use a different name in the marketplace. Maybe one of the partners left the business, and new partners came in but the name was never changed.
There are many other valid and legitimate reasons for having an assumed name.
According to NC General Statute §66-68, however, any person or partnership using a name different than their surnames, and any LLC or corporation using a name other than what is registered at the Secretary of State, must file a Certificate of Assumed Name with the Register of Deeds each county where the company does business.
This is to prevent fraud and to compel an individual or a corporation to disclose the name of the real owner of the business, so that the person or corporation may sue in or be sued by the proper name.
Violation of this section is a Class 3 misdemeanor and can result in a $50 fine.
“Doing business as” is just another issue to consider when setting up a company or doing business. Things change over time. That’s why it’s good to have a relationship with a business attorney who can help you stay on the straight and narrow.
