The Ohio Secretary of State must receive a Trade Name Registration form before a business name can be registered in Ohio. Every five years, it must be renewed and there is a $39 filing charge. The owner of a business name does not get any legal rights to the name just by registering it, it is crucial to remember this. Owners of businesses must file for a trademark in order to safeguard the name.
The formal name of a company that is registered with the state government is known as its legal name. It is the name that appears on all contracts, legal papers, and tax paperwork. A trade name, on the other hand, is a name that a business uses to identify itself to the public. It is often referred to as a “doing business as” (DBA) name. A trade name is frequently used for branding and marketing purposes and can differ from the legal name. What distinguishes a commercial name from an entity name?
A business’s legal owner, such as a corporation or limited liability company (LLC), is identified by the term “entity name.” The entity name is used for both legal and tax purposes and is registered with the state. As was already mentioned, a trade name is a name that a company uses to identify itself to the general public. A company may use several trade names, but only one entity name.
Depending on the needs and objectives of the business owner, an LLC may be preferred over a DBA. An LLC provides personal liability protection and keeps the owner’s assets and liabilities separate. A DBA is merely a name that a business uses to identify itself; it offers no personal liability protection. Consider creating an LLC if you wish to develop your company in the future and want to protect your personal assets. A DBA, however, can be a more economical and straightforward choice if the company is tiny and does not have many responsibilities.
Yes, solo proprietors are allowed to have a business name. In reality, a lot of sole proprietors utilize their trade name to distinguish their company from others. However, it’s crucial to remember that the proprietor of a trade name has no legal protection. In order to safeguard their company name and brand, sole proprietors should also think about filing for a trademark.
To sum up, the procedure for registering a business name in Ohio is reasonably easy and inexpensive. When making a choice, business owners should take into account the distinctions between LLC and DBA, entity name and trade name, and legal name and trade name. In order to protect their name and brand, sole proprietors should think about filing for a trademark. However, they can still use a trade name to identify their company.
Depending on your unique business requirements and objectives, you should choose between a sole proprietorship and an LLC. A sole proprietorship is less complicated to set up and less expensive, but it does not provide personal liability insurance. While an LLC might be more flexible in terms of management and taxation and offers personal liability protection, it can also be more expensive and difficult to set up. A lawyer or tax expert should be consulted to help you choose the right business structure for your unique circumstance.