Choosing a name for your firm is an important step when beginning a business. Many business owners choose to use their legal name, but some decide to use a trade name instead. A trade name is the name that a business uses to conduct business and identify itself to the public. It is often referred to as a “doing business as” (DBA) name or a fictitious business name. In this post, we’ll look at how to use a trade name and address some often asked questions about them.
The name of your business as it is registered with the state government is its legal name. It is the name that appears on your organization’s or incorporation’s articles. A trade name, on the other hand, is the name that a company uses to conduct its operations and identify itself to the general public. The legal name of the business may not match the trading name. As an illustration, if John Smith registers his business as “ABC Inc.” but decides to use the trade name “John’s Auto Repair,” the commercial name is different from the legal name. How Do You Safeguard a Trade Name?
You must register your trade name with the proper government body in order to preserve it. Each state has a different procedure for registering a trade name. You must submit a DBA form to the county clerk’s office or the state government body in charge of business registration in the majority of states. You will have the right to use your trade name in the state in which it is registered once it has been registered. Nevertheless, registering a trade name does not grant you the sole right to use it across the country. You must file a trademark application with the United States Patent and Trademark Office (USPTO) in order to protect your trade name across the country. What is the name under which I trade?
Your firm is run under a name that is known as your trading name. Your trade name may be the same as your legal name or it may be a distinct name that you have registered. Check your business registration records or search for your company on the state government website if you are unsure of what your trading name is. You should include your trading name there.
Generally speaking, if two businesses are located in the same region and operate in the same industry, they cannot share a trading name. Customers may become confused as a result, harming the reputations of both businesses. The two businesses could be able to use the same trading name, though, if they are involved in different industries or are situated in different regions. Before registering a trade name, it’s always a good idea to conduct a trademark search to make sure it isn’t already in use by another company in your sector and vicinity.
Finally, choosing a trade name can help you brand your company and give it a unique character. To prevent future legal problems, it’s crucial to register and protect your trade name according to the correct regulations.
If you run numerous enterprises or branches, you may have two or more Australian Business Numbers (ABNs). Each ABN, however, has to be registered individually and must be associated with a different company or branch. The use of a trade name does not provide you a separate ABN, which is a crucial distinction to make.
An LLC and a trade name are two distinct entities. A trade name, commonly referred to as a “doing business as” (DBA) name, is the name under which a company conducts business. The proprietors of an LLC, on the other hand, are protected from personal liability and their personal assets are kept distinct from their corporate assets by the LLC’s legal framework. In other words, a trade name is just a name that a business uses to conduct business, whereas an LLC is a specific kind of corporate entity.