The Difference Between a Trade Name and an LLC

One of the first decisions you must make when beginning a business is the name of your enterprise. This is where the idea of an LLC and a trade name come into play. Despite the fact that both terms are connected to the name of your company, they have different meanings. We shall examine the distinctions between a trade name and an LLC in this article.

A trade name is the name used by a company to conduct its regular operations. The phrase “doing business as” (DBA) is another moniker for it. Trade names are used to identify a company and set it apart from rivals. If you run a bakery, for instance, you can decide to use the trade name “Sweet Delights Bakery” to represent your company. A trade name does not have any rights or legal protection because it is not a recognized legal entity.

On the other hand, an LLC (Limited liabilities Company) is a type of legal entity that shields its owners from liabilities. One could compare an LLC to a cross between a corporation and a partnership. LLCs combine the liability protection of a corporation with the tax advantages and flexibility of a partnership. An LLC is established by submitting Articles of Organization to the state where it will conduct business. The LLC is regarded as a distinct legal entity from its owners once it has been established.

Let’s move on to the questions that are connected now. Can a corporate name and a business name be different? Yes, it is the answer. A company name and a business name may not be the same. A business name is the name that your customers will see and associate with your brand, whereas a company name is the legal name of the organization that is registered with the state. For instance, McDonald’s is formally known as “McDonald’s Corporation,” but customers only ever hear or see “McDonald’s.”

Can a trading name be registered? Yes, a trading name can be registered. A DBA (doing business as) form must be submitted to the state or county where your company is based in order to register a trade name. By using this procedure, you are able to legally conduct your business under a name other than your given name, the legal name of your LLC, or the name of your corporation.

Can I reserve a company name without using it? You can indeed register a business name even if you never use it. Though you might need to renew the registration from time to time, you should be aware that registering a business name offers no legal protection. In addition, if you do not utilize the name, it can be seen as abandoned and open to registration by someone else.

Can I trademark my dba in relation to this? If your DBA satisfies the criteria for trademark registration, you may trademark it. The name, logo, or slogan that is connected with your company is protected by a trademark, which forbids third parties from using it without your consent. To make sure no one else is using a name or logo that is similar to your DBA, you must perform a trademark search before you can trademark it. The United States Patent and Trademark Office (USPTO) trademark application must also be submitted.

In conclusion, it’s crucial to know the distinctions between an LLC and a trade name before starting a firm. An LLC is a legal structure that offers its owners liability protection, whereas a trade name is the moniker under which a business conducts its operations. If it satisfies the standards, you can register a trade name and trademark it. A business name can differ from a corporation name.