A name may make or destroy a company when it comes to branding. It makes sense that many business owners spend countless hours coming up with names that would appeal to their target market. What transpires, though, when two companies end up with the same name? Brands that share a name are allowed. Let’s look at the laws and consequences of having similar brand names.
Can two firms share the same dba name in this case? Yes, but there is a proviso to that statement. The fictional name “Doing Business As” or “DBA” is what a company employs in place of its legal name. As long as two companies are not in the same sector and don’t share a physical address, they can operate under the same DBA name. For instance, a retail store in New York and a flower shop in California could both use the same DBA name.
Is it preferable to have two LLCs, one might possibly inquire? In some cases, having two LLCs can be advantageous. For instance, establishing two LLCs can shield each business from potential lawsuits or financial problems if you run them in completely distinct areas. Furthermore, by creating different LLCs, it may be simpler to sell or transfer control of one company without doing the same for the other.
In light of this, is it possible for me to expand my LLC? It is conceivable to incorporate a second business inside your LLC, but it’s necessary to think carefully about the legal ramifications. There can be additional documentation and expenses to file, depending on the state in which you reside. Additionally, if the two enterprises are in entirely different industries, it would be advantageous to establish a new LLC to safeguard the assets of each company.
Can you then operate two enterprises from the same location? As long as they are not in the same industry and do not confuse clients, it is possible to have two enterprises in one place. For instance, a hair salon and a nail salon can coexist in the same space because they are two distinct companies that provide various services.
Despite the fact that it is technically permissible for brands and companies to share the same name, it is crucial to take into account the legal ramifications and probable customer misunderstanding. Make sure you are not violating any trademarks or creating confusion in the marketplace if you’re thinking of utilizing the same name as another brand or company. To preserve the assets of each business, it may be advantageous to think about forming a different LLC if you run many companies.
No, you cannot operate numerous firms under the same EIN (Employer Identification Number). The EIN is used to identify the business for tax purposes and is required for each business entity. You must apply for a unique EIN for each of your businesses if you have more than one.