One of the crucial choices to be made when opening a business in Colorado is whether to file for a trade name. The name a company uses to identify itself to the public is known as a trade name. It is sometimes referred to as an assumed name, a fictitious business name, or a “doing business as” (DBA) name. In Colorado, registering a trade name is not required, but it is advised to safeguard your company against disputes with the law.
You must submit a paperwork to the Colorado Secretary of State if you decide to register a trade name there. The “Statement of Trade Name” form is available online or by mail. In Colorado, registering a trade name costs $20, and it needs to be updated every five years. You may stop other companies from using the same name and perhaps misleading clients by registering your trade name.
It’s possible that you’ll also need to apply for a Colorado business license in addition to registering a trade name. Depending on the sort of business and region, a Colorado business license costs a different amount. A restaurant might have to pay $400 or more, whereas a home-based business might only have to pay $50. When figuring out the price of a Colorado business license, it’s crucial to conduct your homework on the particular criteria for your industry and area.
Is it possible for a DBA to have an Inc.? is a frequent query regarding trade names. Yes, an Inc. can have a DBA, is the answer. This implies that you may designate your company as being established using both the trade name and the legal designation of Inc. It’s crucial to remember that registering a trade name does not give your company’s legal structure, such as an LLC or corporation, any protection. You will need to submit separate papers to the Colorado Secretary of State in order to protect your company’s legal structure.
Finally, it’s critical to comprehend the distinction between an LLC and a trade name. While an LLC is a legal framework that offers business owners limited liability protection, a trade name is merely a moniker used to identify a company. The Colorado Secretary of State must receive additional papers and payment in order to register an LLC. A company may operate under both a trade name and an LLC.
“ABC Bakery,” which is used to identify a bakery firm, is an illustration of a trade name. However, if the company is incorporated, its official name can be “ABC Corporation.” The company can use “ABC Bakery” rather than the legal name in marketing and promotional materials by registering a trade name.
In conclusion, while registering a trade name in Colorado is not necessary, it can have significant advantages including preserving your company name and reducing customer confusion. Furthermore, it’s critical to learn the precise specifications for obtaining a Colorado business license and safeguarding your organizational structure. You may launch your company with confidence and position it for long-term success by following these steps.