Understanding the Differences between Assumed Name and Entity Name

Choosing a name is one of the first stages in launching a new business. But choosing a name is more complicated than it first appears. A company could have a variety of names, and it’s important to know how they differ from one another. We’ll go over the distinction between assumed name and entity name, as well as dba and sole proprietor, in this post. We’ll also go over how to form an LLC in Idaho, how to launch a small business in Idaho, and whether you need to register your firm with the state. Default Name vs. Entity Name

An assumed name is a name that a company adopts that is distinct from its legal name. It is sometimes referred to as a trade name or fictional name. To utilize a different name for marketing purposes, John Smith, who owns the company Smith Enterprises, can decide to operate under the name “John’s Auto Repair.” Although it does not alter the company’s legal name, an assumed name is used to give it a distinct identity that may be more marketable.

On the other hand, an entity name is the official name given to a company when it registers with the state in which it is domiciled. All official papers, including contracts, licenses, and permits, employ the entity name, which is the name used for legal and tax purposes. For instance, if John Smith chooses to incorporate his company as a Limited Liability Company (LLC), the entity’s name would be “Smith Enterprises, LLC.” DBA versus a sole proprietor

Doing business as, or DBA, is a phrase used to describe a company that operates under an assumed name. A sole proprietor is a person who owns and runs a business and is liable for all company-related decisions. A lone operator may frequently advertise their business using a dba name. For instance, John Smith, a solo entrepreneur, might operate a landscaping company under the moniker “Green Thumb Landscaping” to draw clients. Establishing an LLC in Idaho

In order to form an LLC in Idaho, you must submit Articles of Organization and a $100 filing fee to the Secretary of State. The name of the LLC, the name and address of the registered agent, the purpose of the LLC, the names and addresses of the organizers, and the length of the LLC must all be listed in the Articles of Organization. Following the approval of the Articles of Organization, you must get all relevant licenses and permits and submit a yearly report to the state. Establishing a Small Business in Idaho You must first decide on a legal structure, such as a sole proprietorship, partnership, LLC, or corporation, in order to launch a small business in Idaho. The next step is to register your company with the government and secure all required licenses and permissions. A tax ID number and registration for both state and federal taxes may also be required. To be sure you have complied with all statutory and financial requirements, you should speak with an attorney or accountant. registering your company with the government You must typically register your firm with the state in which it is located. This entails registering the name of your business as well as acquiring any essential licenses and permissions. Fines and legal repercussions may occur from failing to register your firm. To find out the precise criteria for your firm, it’s vital to contact the Secretary of State’s office in your state or a business attorney.

In conclusion, it is critical for each new business owner to comprehend the distinctions between assumed name and entity name, dba and sole proprietor, the procedure for setting up an LLC and beginning a small business in Idaho, as well as whether you need to register your firm with the state. To make sure you are adhering to all financial and legal obligations and putting your firm in the best possible position for success, it is crucial to seek the advice of professionals and conduct thorough research.