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Depending on the jurisdiction, if an individual is doing business under an assumed name, they are required to file a fictitious business name statement in their city or county. Again, depending on the jurisdiction, this document is required to be updated (or re-registered) on an annual or semi-annual basis.

If a person is doing business as ABC Landscaping Corporation (sending out bills, creating bank accounts, entering into contracts, signing agreements, etc.) and they have not actually created a corporation (by filing Articles of Incorporation with the state), then yes, that individual can be held legally responsible for any actions that were performed using that name (ie. debt).

Articles of Incorporation is a document that is filed with a state's Department of Corporations to begin doing business as a corporation. If a company is doing business as a Limited Liability Company (or LLC) the document is called Articles of Organization. These documents create a separate legal entity so that the people doing business are protected from personal liability and allow the public to find out who notify in the event of a lawsuit.

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14y ago

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