The Difference Between a Business Name and a Company Name

Making a name choice is one of the first steps in beginning a business. But a lot of people are unclear about the distinction between a company name and a business name. We will discuss the differences between these two terminologies and provide some associated information in this article.

The name you use to do business is known as your business name. It is the name that appears on your stationery, website, and promotional items. A corporate name, on the other hand, is your company’s official name. When you create your business entity, you register a name with the state government.

For instance, if you choose the name “John’s Plumbing,” it is the name of your company. But if you establish a limited liability company (LLC) and give it the name “John’s Plumbing, LLC,” that is the name of your business.

“Doing business as” (DBA) is another word for assuming a moniker. You use an assumed name, also known as a DBA, when you conduct business under a name different than your actual company name. For instance, if you wish to operate your firm under the name “JS Enterprises,” but you form an LLC with the legal name “J Smith Enterprises, LLC,” you must submit a DBA application.

Simply said, an assumed business is a company that conducts business under an assumed name or DBA. You can conduct business under a name that is more memorable or descriptive than your actual company name by using an assumed name. The use of an assumed name, however, has several drawbacks. For instance, if you are sued, the plaintiff might not be aware of your business’s legal name, which could make it more difficult to collect a judgment. Additionally, you might need to utilize your official company name when transacting with some banks, suppliers, and other organizations.

You must submit a Certificate of Amendment to the Idaho Secretary of State if you wish to change the name of your company there. Your current company name, your new company name, and any further modifications you wish to make to your firm’s articles of organization must all be listed on the certificate. In addition, there will be a filing charge for the certificate.

In conclusion, it’s critical to know the distinction between a company name and a business name when starting a business. Despite being similar, they have different functions and legal ramifications. Be sure to research the procedure and legal requirements in your state if you’re thinking of utilizing an assumed name or altering the name of your company.