Fictitious Business Name Renewal Companies Could Be a Scam

E ntrepreneurs forming an LLC and using a fictitious business name should watch out for disreputable companies offering to renew a business name filing for excessive fees.

A Victorville, California, business owner thought twice before sending in the $125 fee to an official-looking company that threatened his LLC status would expire, reported the Victorville Daily Press.

The California attorney general said the company appears to be a scam, and that the state filed suit against several similar companies last year that were using stamps and letterhead that appeared official.

The Victorville business owner said he became suspicious because in previous years he simply had to file an inexpensive certificate with the city and publish the name in the newspaper.

With a slowly-recovering economy, the number of scams nationwide is increasing, reports the Chicago Tribune.

Some scams involve switching shipping account numbers, allowing tens of thousands of dollars in shipping costs to be billed to an unsuspecting business owner.

The scams are usually using the stolen shipping accounts to pay for mass mail that attempts to cheat recipients out of personal information or money.