Is Business Name a Legal Entity?

Is business name a legal entity?
A Business name is a registration of a trade name for purposes of business whereas a Company of the incorporation of a separate legal entity to conduct business.

The quick response is no, a company name is not a legal entity. A business name is just a name used to identify a business, whereas a legal entity is a separate and distinct entity from its owners. A business name cannot be used as a legal entity, which is able to sign contracts, bring legal actions, and own property in its own name.

A business must register as a corporation, limited liability company (LLC), or other type of legal entity with the state in which it conducts business in order to become a legal entity. This procedure entails submitting the needed documents and paying the applicable state fees.

However, for branding and marketing reasons, registering a business name can still be crucial. It enables a company to create a distinctive identity and develop a reputation in the industry. It also aids in preventing unauthorized usage of the company name.

A company can apply for a “doing business as” (DBA) name if it wants to run under a name other than its legal name. A DBA is also referred to as an assumed name in Illinois. Because of this, the company can function under a different name without having to change its legal name.

A DBA expires in Illinois, right? A DBA does indeed expire in Illinois. Five years after the registration date is when the license expires. After that, in order to keep using the fictitious name, the company must renew its DBA registration.

How Much Does it Cost to Register a DBA in Illinois Taking This into Account?

For each county that a business plans to operate in, Illinois charges $5 to register a DBA. For instance, a company would have to pay $15 to register its DBA if it wanted to operate in three counties.

How Long Is a DBA Valid in Illinois Taking This Into Account?

A DBA in Illinois expires five years after the date of registration, as was already mentioned. After that, in order to keep using the fictitious name, the company must renew its DBA registration.

In conclusion, although not being a legal entity, a company’s name is nonetheless a crucial component of its branding and marketing plan. A business can operate under a different name without changing its legal identity by registering a DBA. But it’s crucial to remember that a DBA in Illinois must be renewed every five years if you want to remain using the fictitious name. In Illinois, registering a DBA costs $5 for each county where the company plans to conduct business.