Making decisions is a big part of starting a business, and selecting a name is one of them. However, some business owners might ponder whether their company name and trademark can diverge. Yes, it is feasible to have a business name that is distinct from your trademark, to put it simply. But it’s critical to comprehend how the two differ and how it can impact your company.
A company’s operating name is referred to as its “business name,” and it is frequently utilized for marketing and branding initiatives. Contrarily, a trademark is a design, term, or phrase that is used to identify and set apart a company’s goods from those of other businesses. While it is possible, it is not usually the case that a company name and a trademark are identical. In actuality, a lot of companies use a name other than their trademark.
Is it therefore preferable to have more than one LLC or DBA? There is no right or incorrect response to this query. Depending on the demands and objectives of your particular organization. DBAs and LLCs have different objectives. A limited liability company (LLC) is a type of legal entity that shields owner assets from company liabilities. A DBA, or “doing business as,” is a name used by a company to conduct business. Having many DBAs under one LLC may make sense if you run several businesses under various identities. However, it could be preferable to create separate LLCs for each business if you have many entities with various owners.
If I switch to an LLC, do I need a new EIN? You will require a new EIN, or Employer Identification Number, if you are switching from a sole proprietorship or partnership to an LLC. You do not, however, require a new EIN if you are simply changing your company’s name.
People sometimes inquire as to how a holding company for an LLC is established. In order to set up a holding company for an LLC, a new LLC must be created and given ownership of the primary LLC. In addition to owning the subsidiary LLC, the holding company will function as a parent business and have no other operations. For the parent firm, this structure may offer liability protection and tax advantages.
Therefore, is it possible for two LLCs to share an address? The answer is that two LLCs may share the same address. However, it’s crucial to check that each LLC is legitimately registered and has a separate EIN. It is crucial to keep proper records and maintain different bank accounts for each LLC because having many LLCs with the same location may create concerns with the IRS and other regulatory bodies.
Finally, picking a company name and trademark is a significant choice that may have financial and legal repercussions for your company. It is possible to have a business name that is distinct from your trademark, but it’s crucial to comprehend how these two things differ and how they could impact your company. When considering the creation of several LLCs or DBAs, it’s crucial to assess the benefits and drawbacks of each decision and select the one that best serves your company’s goals.
A trademark check should be done to make sure the name is not already registered as a trademark by another company before deciding whether you may use it for your company. Additionally, to make sure the name is available for use as a business name, you can check regional and state databases. Your trademark and business name could be distinct, but it’s crucial to make sure they’re both protected by law. To help with the process, it is advised to speak with a lawyer or trademark specialist.