Legal Question in Business Law in Pennsylvania

Re: ficticious name

Any time a business (or natural person for that matter) uses a name other than their legal name to conduct business then they need to register the fictitious name.

For example, The Monet Museum opens a cafe inside called Claude's. Even though it's inside the museum it should have a fictitious name registered.

But that's not the end. Your question opens issues that I wish more 510(c)(3)s would consider. Does the "business" enterprise change the character of the organization. By requesting information about the fictitious name my sense is that you aren't using a separate entity to conduct the business of the for profit enterprise. This could be costly both in terms of liability and regarding your 501(c)(3) status. It's important that the character of the charitable org not be tainted by the profit venture so those businesses should be conducted separately and have an arm's length agreement regarding ownership and operation. To do otherwise leaves everyone, from the contributors to the board members, at risk for everything from premises liability to loss of tax status to defalcation.

I would be happy to discuss with you or your board the issues you need to examine when considering such a move.

You can get in to with me by writing me at [email protected].

Regards,

Roger Traversa

[email protected]

But I see more in the question that just the name