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What requirement must a sole proprietor fulfill to ensure legal operation under a fictitious name?

  1. Submit an annual report

  2. Register the fictitious name with the state

  3. Obtain a federal license

  4. Have a partner sign the registration

The correct answer is: Register the fictitious name with the state

To legally operate under a fictitious name, a sole proprietor must register that fictitious name with the state. This process ensures that the name being used is officially recognized and can help protect consumers by providing them with information about the business's ownership. Registering a fictitious name also allows the business to operate under a name that may not reflect the owner's personal name, which can be important for branding and marketing purposes. Submitting an annual report, obtaining a federal license, or having a partner sign the registration are not requirements directly related to the registration of a fictitious name. An annual report pertains to certain business entities, federal licenses are necessary for specific regulated activities but are not a universal requirement for all businesses, and the involvement of a partner in the registration process is not a standard requirement for sole proprietors. Therefore, registering the fictitious name with the state is the essential step for legal operation under that name.