A trade name, commonly referred to as a fictitious name or DBA (Doing Business As), is the name that a company uses to conduct business and which differs from the company’s legal name. Businesses that want to utilize a name that is more memorable or marketable than their legal name frequently do this. To guarantee legal compliance, American firms must register their trade names with the Internal Revenue Service (IRS).
Businesses must register their trade names with the IRS in order for them to maintain track of all companies that use fictitious names. This is crucial for tax purposes as well because the IRS wants to know which company is in charge of filing tax returns and paying taxes. A trade name that has not been registered may be subject to penalties or legal action.
If you’re forming a business in Arizona, you can use the Arizona Corporation Commission’s online database to see if the name you want is already taken. This will indicate whether the name is accessible or whether another company is already using it. In order to avoid legal concerns and confusion, it is crucial to select a distinct name that is not currently in use.
Any business owner must make a serious decision when selecting a trade name. It symbolizes your brand and has a significant influence on how clients view your company. Think about your target market, industry, and values while selecting a name. It should also be available as a domain name for your website and be simple to recall and pronounce.
Every year, LLCs in Arizona must renew their registration. This entails making a renewal payment and amending any company changes, including a new trade name. To prevent fines or legal action, it’s crucial to stay current with all legal standards. In conclusion, a trade name is a name that a company uses to conduct business and which differs from the company’s legal name. For the purpose of ensuring legal compliance and accurate tax reporting, it is crucial to register your trade name with the IRS. Think about your target market, industry, and values while selecting a name. Last but not least, be sure to adhere to any legal obligations, such as renewing your LLC registration annually.
Yes, two companies may use the same DBA (Doing Business As) name as long as they are situated in various states and different industries. It’s crucial to keep in mind, though, that using the same DBA name can confuse clients and lead to legal issues. Therefore, it is advised that companies select distinctive DBA names to prevent any potential complications.