Is Business Legal Name and Trade Name the Same

Company names often have abbreviations after them, including LLC and Inc. Find out what those abbreviations mean and how an LLC differs from a business. Just be sure to register your business names and follow all the necessary steps to apply for a DBA. Changing the name of your business requires a bit of work on your end. And the process can vary depending on the structure of your business. For example, Walmart`s trade name is Walmart, but the company`s legal name is Wal-Mart Stores, Inc. (which will actually become Walmart, Inc. effective February 1, 2018). The Small Business Administration (SBA) website provides a search tool for the specific requirements for registering business names in each state. The registration requirements for trade names are more about educating tax collection agencies about your business than providing substantial trademark protection. In many states, registering a business name doesn`t stop anyone from operating a business under the same business name, which is why you can find more than one company called Joe`s Painting and Roofing that operates in different cities in the same state. Small businesses with a presence in e-commerce may be responsible for collecting and transferring sales tax in multiple states. The company name is the legal name under which your business is registered for official tax and government purposes.

It is important to have this name so that you can officially do business by hiring employees, providing services, and getting the equipment you need to do business. For example, if your customers pay you with checks, registering both names means you can open a business account under both names and your customers can use your legal name or DBA as the recipient. This is especially handy if your customers don`t know your legal name. It is up to the company to determine whether or not it can benefit from the use of a trade name instead of its legal company name. Using a DBA or trade name has its advantages and disadvantages. Before you decide to use a trade name instead of your legal trade name, consider the following advantages and disadvantages of using a trade name. Your business name is one of the first things potential customers notice about your business. It connects your customers with your products or services. With a good company or business name, your business is one step closer to success. However, the use of a trade name offers certain advantages to all companies, regardless of their type of entity. Trade names do not have to follow the same naming conventions as the use of the terms « LLC », « Corporation », etc.

You can choose a short, crisp business name that you want to do business with. A database administrator is an alias, not an actual business unit. It must be associated with a legal entity. Deciding how to call your business isn`t as easy as it sounds. The name of your company says a lot about your business. So you need a unique, memorable and attention-grabbing name. The integration process is long and complex. You need to get directors and shareholders, write articles of association and know the tax implications. This is a path you should take if you can handle the burden of owning a large business.

Small businesses can get by with a DBA. A trade name can also be called a Doing Business name as a name (DBA). That`s the name the public sees. Think of it as your company`s nickname. Businesses can use their trade name or DBA for marketing and sales purposes instead of their legal name to attract more customers. If you are planning to start a new business, you need to ask yourself if you want to start or start the business in a different way. Instead of onboarding, you can register a database administrator. If multiple companies are connected, you can create a business with many database administrators. If you form a corporation or LLC, you will need to register your company`s legal name with your state. Name registration is simply part of your official corporate incorporation or LLC documents.

Whatever name you use in these submissions, it is your legal name. Separate registration is not required. Obviously, this trademark infringement test is very different from the standards that apply to the Secretary of State`s assumption of the legal name of a company under Chapter 55D. Whether your new business name is in fact confusingly similar to someone else`s trademark for trademark infringement purposes is a much broader and more subjective investigation than whether their trade name is simply distinguishable from that trademark. Unfortunately, many new business owners only learn this after receiving a cease and desist letter from someone claiming that the company name infringes their trademark rights. If the infringement complaint is valid, the business owner may need to adopt a different business name. This can mean the loss of all the time, energy and money invested in building brand awareness in the abandoned name. A business name can be a good idea if your business name is easier for customers to say and remember. While most people know what LLC or Inc. or Co. means, it can seem cumbersome at the end of a smart business name. Filing a business name doesn`t start a new business – a business name is simply a nickname for the business you already have.

Requirements vary by state and location, but you will generally need to file a business name if you use a name other than the official legal name of your LLC or company. Sole proprietorships and partnerships are generally required to file a DBA if they use a name other than their own surname. You are not required to have a trade name; You can simply do business with your full legal name. However, if you choose to use a business name, you will need to register it with your state or county. To protect consumers (so they can determine who actually owns a business they interact with), you`ll need to file a fictitious name declaration (sometimes simply called a DTA filing) by filling out a simple form, paying a fee, and sometimes placing a legal notice in a newspaper. A business name is the forward-looking name by which customers and customers know your business. For this reason, it is also known as DBA – the name with which you « do business ». Many companies will abandon their registered company name with « LLC » or « Inc. » as their business name. For example, the company name of trader Joe Trader is Trader Joe`s Co., but his client name will always be Trader Joe`s. But did you know that on paper, many companies use a second « legal » name that is different from their catchy and familiar name? If you want to go public with your company, the foundation is important.

It also gives you more legal protection than a partnership, as a company is its own legal entity. Even if you want to hire or raise money, integrate immediately. At the very least, try to pronounce your business name clearly, in an eye-catching and simple way, and remember what impressions your name leaves for a potential customer. Use your creativity. No matter what name you choose, you want to make sure that what you do is communicated in a fun and memorable way. If you find a business name to submit legally, make sure you have some backups in case your first choice is made. The trade name can give you a little more choice depending on where you are and what local and state laws allow. Julia is a New York-based author and began reporting on technology and economics during the pandemic. It also covers books and the publishing industry. Creating certain business units, filing an accepted name, or registering a trademark can help you protect the company name. The company name is the legal name that your company filed with your state when you created your LLC, company, or other business structure. A company name is the legal name of your company.

It is the official name of the person or organization that owns a business. And that`s the name you use on your government forms and business documents. Typically, a company has both a legal company name and a business name. Legal, as we have already mentioned, appears on legal documents and government forms. On the other hand, a trade name usually appears on ads and signs. If you have a small business, you can set up a DBA with the Secretary of State or District Clerk and run the business as a partnership or sole proprietorship. .