The Small Business Administration, also known as SBA, is a department of the US government that aids start-ups and small enterprises. Helping businesses comprehend the idea of trade names is only one of the numerous things the SBA undertakes. We shall examine what SBA meant by trade name in this article and address some pertinent queries.
The name a company uses to identify itself to the public is known as a trade name. It is sometimes referred to as a fictional name or a “doing business as” (DBA) name. A legal name, which is the name that appears on official papers like business licenses and tax forms, is distinct from a trading name.
If John Smith, for instance, owns a company called “Smith Enterprises, LLC,” but wishes to operate under the name “John’s Handyman Services,” he would need to register “John’s Handyman Services” as a trade name.
In Maryland, it is legal to use more than one trade name. But each trade name would need to be registered separately. The Maryland Department of Assessments and Taxation (SDAT) oversees the registration procedure. Online or postal registration is an option. In Maryland, registering a trade name costs $25.
You must submit an amendment to the SDAT in order to add a DBA to an already-existing LLC in Maryland. The amendment can be sent in by mail or online. In Maryland, filing an amendment costs $100.
The cost of registering a trade name in Washington, DC, is $55. The Department of Consumer and Regulatory Affairs (DCRA) oversees the registration procedure. Online or postal registration is an option.
In Washington, DC, a trade name is the same as a “fictitious business name.” It is the name through which a company introduces itself to the general audience. To conduct business in the District of Columbia, companies are required by law to register their fake company name with the DCRA. The registration can be renewed for a cost after the initial two years.
In conclusion, any business owner must grasp trade names. It aids in creating your brand identity and differentiating your company from competitors. Make sure to register your trade name with the proper government agency if you intend to use it for your company. The procedure is typically simple and inexpensive, but in order to avoid any legal problems, it is imperative to follow the law.
The article states that a business may use numerous trade names, but that each name must be registered separately with the SBA.