Like many other US states, Maryland permits business owners to use trade names or business names to identify their organizations. But whether or not they need to register their trade name with the state is a concern for many business owners. This article will clarify the distinction between a trade name and a business name and investigate whether Maryland mandates that companies register their DBAs (Doing Business As) names.
Let’s first discuss the distinction between a trade name and a business name. A company’s trade name, which differs from its legal name, is the name under which it conducts business. The name a business has registered with the state as its legal name is known as a business name, on the other hand. For instance, if “XYZ LLC” wishes to conduct business as “ABC Consulting,” the latter name is regarded as a trade name.
Reverting to the original query, is DBA registration necessary in Maryland? No, is the response. Maryland does not require companies to submit a DBA registration form in order to utilize a trade name, in contrast to many other jurisdictions. The Maryland Department of Assessments and Taxation must receive the Articles of Organization or Articles of Incorporation that are used to register a business’s legal name.
Although registering a company’s trade name is not required in Maryland, it is nonetheless advised. By barring rival companies from using the same name, registering a trade name gives the business owner legal protection. Additionally, it aids in building brand recognition and a credible reputation for the company.
Businesses can submit a Trade Name Registration form to the Maryland Department of Assessments and Taxation to register a trade name there. The registration has a $25 registration fee and is good for five years. The registration must be renewed every five years.
In conclusion, while using a trade name is not required for companies in Maryland to have a DBA, doing so is still advised. It offers legal protection and supports the development of the company’s professional image. Understanding the distinction between a trade name and a business name is crucial for business owners, as is correctly registering their legal name with the state.