Legal action may be required even with a sole proprietorship, if the business name is not the same as the persons. For example, I had a small IT company in Illinois years ago. The name was Macro Bit Flippers (the company with a Porpoise). I needed to perform a fictitious name registration with the Secretary of State.
Why would businesses be required to register fictitious names?
Business reuqires to register the fictitious name in order to inform the general public that the sales proprietor is conducting business under a name different from his legal name. The fictitious name under law are also referred to as 'Doing Business As' or Assumed name.
Usually they are put into place to safeguard the interests of the consumers. Registration is made compulsory so the consumers are able to understand and identify who actually own the company and with whom are they dealing with.
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