This article discusses a New York case and law, but most likely every state
has similar laws, so you should read this even if not in NY.
A recently published court decision in Staten Island, NY has found that a
corporation conducting business under a non legal name violated New York's
General Business Law section 130 by conducting business under an unregistered
assumed name, and that such conduct constituted a deceptive business practice
under New York's General Business Law section 349. The corporation was fined
$1000 for each offense and directed to show cause why its building operation
business should not be enjoined from continued operations until the corporation
complied with the law and registered its assumed name, or stopped using the
assumed name.
I have warned you of this conduct before. If you are an individual or
partnership conducting business under an assumed name then you must register
with the county clerk. If you are a corporation doing business under an
assumed name then you must register with the New York Secretary of State.
If you are a corporation then your name ends with one of the following 6
names, and they are most certainly not interchangeable, and one is not the
abbreviation of another: Inc; Corp; Limited; Incorporation; Corporation;
Limited.
If you are a Limited Liability Company then your name ends with LLC.
If you are doing business under an assumed name then the name you have
designed is your proper name.
Another thought is that when you do business under an unregistered name, a
non legal entity, you risk personal liability. The common law is that an agent
for an undisclosed principal is personally liable. It follows that an agent
for a non legal entity is acting as an agent for an undisclosed principal.
There is no justification for not complying with these simple rules. Utter
ignorance or not wanting to pay the legal and filing fees is really a lame
excuse, and very poor business judgment.
Take a look at your contracts, office stationary, business cards, checks,
signs, advertisements, telephone listing, web site listing and make sure you
are using your proper name or legal assumed name.