The Difference Between Company Name and Business Name

The choice of a company name is one of the first ones an entrepreneur must make when beginning a firm. However, there is frequently misunderstanding when it comes to “company name” and “business name.” Despite the fact that they could appear to be equivalent, the two have significant distinctions.

The legal name of the organization that is registered with the state where it was created is known as the company name. The government acknowledges this name as the company’s legal name. Additionally, it is the name that is listed on official papers like contracts and company licenses. In a sole proprietorship, the name of the business is regarded as the owner’s legal name.

On the other hand, a business name is the name under which a corporation operates. This name, which is frequently used for marketing purposes, may differ from the legal name. The official name of a firm, for instance, might be “XYZ Corporation,” yet it might operate under the moniker “XYZ Solutions.” Customers recognize the company by its name and link it with it.

You might be unsure if you can use your name as the company name if you’re starting a limited liability corporation (LLC). You can, is the response. In fact, because it is short and simple to remember, many business owners decide to use their name as the name of their LLC. However, you must register it with the state if you intend to use a business name that differs from your legal name.

Should I Form an LLC in My Name? If you want to be the only owner of the company, using your name as the name of the LLC may be a wise choice. However, using your name might not be the ideal option if you intend to have partners or workers. This is due to the fact that using your name may make it challenging to draw in investors or distinguish between your personal and professional identities. Does the middle name appear in the legal name?

Use your entire name exactly as it appears on your birth certificate or other official documents when referring to your legal name. Accordingly, if your middle name appears on your birth certificate, it must also appear in your legal name. Legal Name: What Does It Mean?

The name that appears on your birth certificate or other official documents, such a driver’s license or passport, is known as your legal name. It is the name that your official name according to the government is. When applying for a loan or creating a bank account, for example, it’s crucial to use your legal name.

Conclusion: Despite their apparent similarity, the phrases “company name” and “business name” have different connotations. Your business name is the name you use to do business, whereas your company name is the legal name that is registered with the state. Think about the marketing and legal repercussions of your choice before deciding on a name for your company. For formal purposes, you should always use your complete legal name.