Can a Corporation Use a Trade Name?

To define their brand and set themselves apart from rivals, many businesses use trade names or “doing business as” (DBA) names. A DBA is a registration that enables a business to operate under a name other than its legal name, whereas a trade name is a name that a firm uses to identify itself to the public.

The majority of states permit corporations to use trade names and DBAs as long as they register them with the state and adhere to specific requirements. There are several limitations on what a corporation can call itself, though. The name, for instance, cannot be identical to or similar to an existing trademark, nor can it mislead or confuse consumers.

A corporation may also use the same name as its DBA or LLC, but it’s crucial to think about any potential drawbacks before doing so. For starters, it could be unclear to consumers and suppliers as to which organization they are dealing with. Additionally, having many names might result in additional paperwork and administrative effort as well as making it harder to keep a consistent brand identity.

It’s critical to be aware of any potential drawbacks if you’re thinking about utilizing a DBA. For instance, a DBA does not provide legal protection for your company name and does not shield you from responsibility or legal action. When applying for loans or credit, some banks and lenders may also need you to use your legal name.

There are a few various ways you can pay yourself if you have an LLC. One typical strategy is to take a salary as an employee of the LLC, which will result in a regular payment with taxes deducted. Taking distributions, which are payments provided to LLC members in accordance to their ownership share, is an additional choice. Payroll taxes are not applied to these payments, but self-employment taxes might.

The procedure to file a DBA in Fulton County, Georgia, is not too complicated. You must first select a name that is not being used by another entity. A “Trade Name Registration” form can then be submitted to the Fulton County Clerk’s office. In order to register your DBA, you must fill out a form with information about your company and the name you intend to use.

For businesses to identify themselves to the public and set themselves apart from rivals, having a trade name or DBA can be helpful. Nevertheless, it’s critical to be aware of the potential drawbacks and to abide by state laws and regulations. To make sure you’re choosing the right course of action for your company, it’s a good idea to speak with a business attorney or accountant before using a DBA or registering a trade name.