The formal name of a company that is registered with the government is known as its business name. It is sometimes referred to as the registered name or legal name. All legal and official documents, including contracts, tax returns, and company permits, go by this name. The company name is typically chosen in accordance with the goods or services the business offers; it must be original and unclaimed by another company.
A trading name, on the other hand, is the name that a company uses for its regular activities and branding. The phrase “doing business as” (DBA) is another moniker for it. For instance, if a business sells goods under the name “XYZ,” but its legal name is “ABC Corporation,” then “XYZ” is its commercial name. A trading name cannot be the same as an already registered business name, although it can be altered more readily than a business name.
The linked query, “Can a sole trader have a business name?” is now at hand. Yes, it is the answer. A solo proprietor has the option of registering a business name for their enterprise. This enables them to conduct business under a name other than their own, which can support branding and marketing initiatives. However, the lone proprietor must use their given name to do business if they decide not to establish a business name.
“What is better, an LLC or a sole proprietorship?” is another similar query. The solution is based on the particular requirements of the business owner. A sole proprietorship is easier to start and less expensive to run, but the owner is personally liable for all debts and legal concerns. An LLC, on the other hand, is regarded as a distinct legal entity and offers security for the owner’s personal assets. It is more difficult and expensive to set up and maintain, though.
In light of this, the next query is, “How long does it take to form an LLC in CT?” The short answer is that forming an LLC in Connecticut normally takes 7 to 10 business days. This entails submitting the proper documentation to the Secretary of State and acquiring any applicable licenses or permits.
The final query is, “Do I need a registered agent for my LLC?” Yes, it is the answer. A person or business selected as the LLC’s registered agent will receive all legal and official correspondence on its behalf. This ensures that the LLC is informed of any significant legal difficulties or notices and is mandated by law in the majority of states, including Connecticut.
For legal and branding reasons, it is crucial to grasp the distinction between a business name and a trading name. The decision between an LLC and a sole proprietorship depends on the particular requirements of the business owner, and lone traders are permitted to choose a business name. In Connecticut, forming an LLC normally takes 7 to 10 business days, and an LLC needs to have a registered agent.