Starting a business can be a thrilling notion, but it can also raise a number of issues, particularly in terms of the law. The choice of a company name is one of the first choices a business owner must make. This name may be the company’s legal name or a trading name, also referred to as a DBA name or “doing business as” name. Whether a trading name needs to be registered is still up for debate.
Depending on the state where the company is based, there are different answers to this question. Businesses are not needed to register their trade names with the state, for instance, in North Dakota. The owner must submit a Certificate of Assumed Name to the county where the business is located if it is operating under a name different than the owner’s legal name. This certificate is then printed for four consecutive weeks in a countywide newspaper with public readership.
While registering a trade name may not be required by law in all places, it is still a smart business move, it is vital to know. Opening a business bank account, requesting business licenses and permits, and protecting the company from potential legal concerns can all be made simpler by registering a trade name.
So what makes a trade name different from a legal name? The name that the company uses to register with the state is known as its legal name. For all legal and tax purposes, this name—typically the name of the owner or owners—is utilized. Contrarily, a trade name is a name used by the company to conduct its operations; it is not the legal name. This name is frequently used for branding and marketing purposes, and it can be altered without changing the company’s legal name. If you’re launching a business in North Dakota, you might be curious about how much it will cost to register. Depending on the sort of corporation being created, registering a business in North Dakota has a range of costs. For instance, a domestic corporation must pay $100 to file its articles of incorporation, but a limited liability company must pay $135 to do the same.
You might also wonder whether you can act as your own registered agent in North Dakota. The short answer is yes, provided you have a physical address in the state and are readily available to receive legal documents during regular business hours.
Last but not least, it is important to remember that a trading name and a business name are not always synonymous. A trading name is the name the business uses internally, whereas a business name is the legal name of the entity. A company may use more than one trading name, but it may only use one legal name.
In conclusion, even though it might not be needed by law in some jurisdictions, registering a trade name is still a smart business move. It can make it simpler to register a business bank account, apply for business licenses and permits, and safeguard the company from potential legal problems. It’s also crucial to comprehend the distinction between a legal name and a trading name, the expenditures involved in registering a firm, and the regulations governing registered agents.
While a company name is the formal name of the legal body that owns the business, a trade name is the name that a business uses for trading. A trade name and a business name may occasionally coincide, however this is not usually the case. It is significant to note that, depending on the jurisdiction, different rules and regulations may apply to the registration of trade names and business names.