The name a company uses to distinguish itself in trade is known as a trade name. It can be registered as a trademark and is frequently used as a brand name. As an illustration, Nike is a trade name. Multiple trade names may be used by a company, but each one needs to be registered separately with the relevant authorities.
A DBA, on the other hand, refers to the name a firm employs to carry out its operations and is a legal term. It’s also referred to as an assumed name or fictitious name. For instance, John Smith would have to register “John’s Crafts” as a DBA if he wanted to sell his handmade goods under that name.
Although it is not necessary in Arizona to register a DBA, doing so is advised. It gives companies a way to create a legal identity that is distinct from the identity of the owner. Businesses can open bank accounts and accept payments in their company name by registering a DBA.
The name a firm chooses to identify itself in commerce is known as a trade name, according to the Small firm Administration (SBA). To safeguard their intellectual property rights, the SBA advises firms to register their trade names as trademarks.
The filing charge for establishing a limited liability corporation (LLC) in Arizona is $50, while the yearly report fee is nothing. A DBA in Arizona must be filed and costs $10; it has a five-year expiration date. A company must renew its DBA registration every five years.
A DBA is not the same as a trade name, to sum up. A DBA is the name a firm employs to carry out its operations, whereas a trade name is the name it uses to identify itself in commerce. Although forming a DBA in Arizona is not necessary, it is advised that companies have a distinct legal identity. In Arizona, establishing an LLC costs $50, whereas establishing a DBA costs $10 and needs to be renewed every five years.