There are dozens of decisions to make when you start a business, but one of the most important ones is your business name. Some might even say that it’s harder than naming a baby. After all, the government doesn’t give “rules” about what you can name your children. They do give rules for business names.
Thanks to those legal regulations, fictitious names are one type of business name that can get a bit confusing. So if you’re wondering what a fictitious name is, if you need one, or how you can get one, you’re in the right place. In this guide, we’ll cover all the essentials to Mississippi fictitious names so you don’t have to sort through the legal jargon and focus on what really counts: your business.
Important Tip
What is a Mississippi Fictitious Name?
A fictitious name—often called a DBA or trade name or assumed name—is a type of business name. More specifically, it’s a fake name used by a business, much like you might use a nickname around family and friends.
A bit more technically, a fictitious name differs from the business’s legal name. Here’s where it becomes important to note what kind of entity you’re running.
For example, let’s say Lauren Smith operates as a sole proprietorship. From a legal standpoint, her business is indistinct from her own person. So her business’s legal name is, well…Lauren Smith. Not many people want to call their business by their own name.
Lauren sells handmade baby clothes, so she decides to name her shop “Sew Sweet Creations.” Unless she incorporates as an LLC or corporation, she’d be using a fictitious name. Because of this scenario, fictitious names are most commonly used by unincorporated entities.
That said, many corporations and LLCs also choose to use fictitious names. For example, a local restaurant, “Becky’s Bistro,” might want to expand across their county, with a slightly different name for each location. Instead of creating a new LLC for the new locations, Becky might get a fictitious name for it. Corporations might do something similar for new product lines, too.
But that’s fictitious names in a nutshell!
Is fictitious name registration required in Mississippi?
Mississippi, unlike many states, actually doesn’t require fictitious name registration. It’s completely voluntary. You can simply begin using a fictitious name of your choice.
Technically, registering your fictitious name does not give you exclusive rights to it. So you might be thinking, then why bother? Registering does add your name to the state record, so other businesses (and the general public) will be aware that you’re doing business under that name. In general, most entrepreneurs try to create a name that’s unique (that’s good business, after all). So if they see that someone has already registered a given name, they might decide to create another name. There’s no guarantee, of course. But because of the public record, we recommend registering your fictitious name.
Benefits to Registering a Mississippi Fictitious Name
There are several benefits to registering a fictitious name. Unfortunately, registering doesn’t grant you any exclusive rights, but from a practical standpoint, it is good to get your name on public record. It’s always good for the public to be able to see the people behind a business name. And as an added plus, having a written, statewide record of your name might deter others from choosing the same fictitious name.
One benefit you might not think of right away is that a fictitious name allows you to get a business bank account in that name. This isn’t a necessity for many entrepreneurs, but from an accounting standpoint, it’s really helpful. You can keep all your “business funds” in one place, separate from your personal funds. That’s a good habit to start from the get-go (especially if you ever intend to become an incorporated entity later).
On a similar note, a fictitious name gives your customers peace of mind. It’s not uncommon for customers to write checks, right? Without a fictitious name, they’d write the check to you personally. Some people are leery about that. But thanks to a business bank account, Lauren can tell her customers to make their checks out to “Sew Sweet Creations.” It’s just a psychological thing, but a fictitious name gives your business an extra layer of legitimacy.
Register your Mississippi Fictitious Name in 3 Steps
1. Check that your fictitious name doesn’t infringe on any legally protected names.
Before you register a fictitious name, you have to do your homework to ensure that you actually have clearance to use that name. Here are a few of the names you cannot use:
- Names that are already in use as the legal names of any corporations, LLCs, and other protected entities in Mississippi
- Names that have been reserved by corporations or LLCs to use later as legal names
- Names that are protected by U.S. trademark law
The Mississippi Secretary of State will automatically reject your fictitious name if it infringes on other names registered in the state. They won’t check the U.S. Patent and Trademark Office’s database for you. That’s why it’s important to complete a few different searches.
First, you’ll need to run a Business Name Search. This is your way to check the state database for any exact matches to your fictitious name. As a general rule, if you search your desired fictitious name and the tool pulls up any matches, you’ll need to change your name.
Resource: Need help with the Business Name Search? Check out our full name search guide here.
Next, we recommend searching the U.S. Patent and Trademark Office’s trademark database. Even though trademarks are usually regarded as visuals or logos, any names and text included within those visuals are nationally protected. That means no other names or visuals in the entire United States can’t be the same or similar as a trademarked name.
There are plenty of examples of different small businesses being taken to court for infringing on the name of large international chains, but we won’t get into them. Just rest assured that you’ll be doing yourself a big favor by ensuring that your name is completely unique.
Another optional search is just your tried-and-true Google search. This won’t give you any systematic, organized results like what you’d get from the Business Name Search. But it will give you insight into names being used everywhere.
For example, you might find that your desired name is being used by another business in a neighboring state. That’s fine as long as the name isn’t trademarked and you intend to run business exclusively in Mississippi. But if you have any aspirations of expanding into other states, you’ll want to know what names are in use there.
2. File the appropriate fictitious name certificate.
In Mississippi, the process of registering your name is relatively simple. First off, you’ll have to request the fictitious name certificate; the state doesn’t allow for online filings of this registration, and the form isn’t readily available.
Once the state sends you the form, you can fill it out and file it. Mississippi requires a $25 fee for this registration, but as soon as you’ve submitted it, your fictitious name is a part of the public record.
3. Renew your fictitious name.
In some states, a fictitious name lasts forever. But in Mississippi, your fictitious name lasts for five years. Before that five-year period expires, you’ll need to renew your fictitious name if you intend to continue using it.
The renewal process is practically identical to the registration process: you’ll need to request the form from the Secretary of State, fill it out, and pay the filing fee. Once you’ve done that, your name is good to go for another five years.
Other Considerations for Your Fictitious Name
Now that you’re a proud owner of a Mississippi fictitious name, there are a couple things to keep in mind.
Most importantly, you should note that a fictitious name does not give you any personal asset protection. That’s a perk that comes with incorporating your business, such as forming an LLC or corporation.
If you already are (or you’re thinking about forming) an LLC or a corporation, then you get personal asset protection and even privacy through a registered agent service. This means that if something ever goes wrong with your business, your personal belongings—your car, your house, your personal savings account—are protected. Creditors or legal plaintiffs cannot touch them.
That protection is not available to unincorporated entities like partnerships or sole proprietorships. Moreover, applying for a fictitious name does not grant you that protection. In these cases, if something went wrong with your business, you’d have to pay any debts out of personal funds. So please don’t rely on a fictitious name for those protections.
Next, keep in mind that registering a fictitious name doesn’t prevent businesses in other states from using that name. The same applies for business’s legal names, too. We won’t get too technical with this, but each state governs its own businesses with no effect on businesses in other states. So as a businessperson in Mississippi, you’ll follow Mississippi law and federal (national) law for businesses. Alabama, for example, has no jurisdiction over your business unless you choose to expand into Alabama. This affects business names, too.
If you want to protect your fictitious name or legal name outside of Mississippi, you do have options. Foremost among them is applying for a trademark with USPTO. If that’s something you’re interested in, we recommend seeking additional legal counsel. Trademarks are a very complicated (and expensive) process, and a lawyer will help you conquer every aspect of the application.
Conclusion
Important Tip
Fictitious Names might sound a bit complicated, but they don’t have to be. As long as you follow the proper state guidelines, it’s actually as simple as requesting the form, filling it out, and paying the filing fee. Hopefully this guide has taken away some of the guesswork to Mississippi Fictitious Names.
If you decide that forming an actual entity is right for you, we recommend forming a Mississippi LLC for most small businesses and entrepreneurs. You can either register it yourself or hire an LLC filing service.