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New to Fictious Name Requirement after 20 years. What now?

by lpd, Window Shopper

  • Created: June 22, 2011, 9:46 am
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2 comments

I have had a business in Florida for more than 20 years. It was incorporated with the previous owner, and I have it as a sole proprietorship in my home. Even though I used an attorney in the process of my purchase of the business, I never knew anything about a fictious name until just this week. I am attempting to purchase some supplies from a vendor who is requiring all verification of our bank account, etc. Suddenly, I find out that mybusiness shows as closed. It has not mattered at all because it is a mail order business. I do not advertise locally at all, and I'm registered with the county and state for tax exemption and sales tax collection.  When I switched banks, I was directed to get a federal ID number (EIN I think it was. Not sure. I'm at my day job.) I will be returning a call to this vendor to find out why they are digging so deep. I just want to pay for the product and get it on its way.But I have now looked at some links from this site in regard to fictious names. If I understand it right, I must register and pay $50 for a five-year registration, and then do that every five years. My question is: Can I now just jump in and do this effective immediately or am I going to face any kind of difficulty regarding the past years?Thanks. lpd

Tags: Discuss Popular Topics, Starting & Registering a Business
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ngoriel | Community Moderator | 6/22/2011 - 8:06 pm

Check out our five steps to registering a business at http://www.sba.gov/content/5-steps-registering-your-business .  

BizResearcher | Window Shopper | 6/22/2011 - 11:40 am

Nearly every state requires business names to be registered if you are not using your full legal name as part of the business name. In some states, once the name is registered it doesn't expire. Apparently in your state it expires after 5 years. If the previous owner didn't renew the name, then it would expire and you are no longer considered a legal business. The vendor is probably checking to protect themselves. They want to know that they are selling to a legal business. If the business was a sole proprietorship, you shouldn't have a problem re-registering the name unless someone else has registered it. Be sure to do a check on your state's web site to find out. If someone else has registered the name, you should be able to register a variation of the name.   You mention that the previous business was a corporation. Because the required annual report was not returned, the business was probably administratively dissolved by the state. If you want to be a sole proprietor, you shouldn't be affected by this. My understanding is that when you register the name, you, in effect, create a new business and anything that occurred in the past is history. It should take only a few minutes to download and print a form and register the name. When you talk with the vendor, you might explain that you purchased the business and the previous owner didn't disclose the need to renew the name to you, but you are taking care of the issue. Hopefully, they will be understanding.