Making a brand identity for your company and drawing in clients both depend on the name you choose. To choose which one is best for your company, though, can be difficult given the variety of possibilities accessible. DBA and trade name are two frequently conflated terms. The distinctions between a DBA and a trade name will be covered in this essay, along with some pertinent questions.
What does a DBA do? The acronym DBA stands for “doing business as.” A business that conducts business under a name other than its legal name is referred to by this legal term. For example, if John Smith runs a company called “Smith and Sons LLC” but wants to run a bakery under the name “Sweet Bites,” he would need to establish a DBA. A DBA enables a company to use a name for marketing and branding purposes that differs from the legal name. What Exactly Is a Trade Name? The name that a company uses for commercial endeavors is known as a trade name. Customers connect this name with the company’s goods and services. A “fictitious” or “assumed” name is another term for a trade name. A trade name, in contrast to a DBA, is not a recognized legal term. Instead, it is utilized to set a company apart from its rivals and build brand recognition.
Are DBA and Trade Name the Same Thing? No, a trade name and a DBA are not the same. A business that conducts business under a name other than its legal name is referred to as a DBA in legalese. A trade name, on the other hand, is the moniker that a company uses for commercial endeavors. A DBA is legally necessary, but a trade name is optional and is used for marketing. Can a DBA and an LLC use the same name? Yes, both a DBA and an LLC may use the same name. A DBA is a legal designation for a company doing business under a name other than its legal name, while an LLC is a legal entity distinct from its owners. An LLC may therefore use both its legal name and other DBAs.
A Sole Proprietor Can Have More Than One DBA.
A sole proprietorship can indeed use numerous DBAs. A sole proprietorship’s owner can utilize a DBA to run various businesses under the same legal name because it is not a distinct legal entity. To the state or local government where the business is located, each DBA must be registered.
In conclusion, DBA and trade name are two distinct concepts that are frequently misunderstood. A trade name is the name that a business uses for commercial purposes, whereas a DBA is a legal word used to refer to a firm operating under a name different than its legal name. To make the best decision for your company, you must fully comprehend the distinctions. As long as each DBA is registered with the right government agencies, an LLC and DBA can share the same name, and a sole owner can have numerous DBAs.