Understanding the Difference between Trade Name and Business Name

What’s the difference between a trade name and a business name?

A trade name is the name your business is commonly known as or the name you use when advertising or doing business. A trade name is also called a DBA (doing business as) name. A good example of this is Walmart. A trade name is usually just the business’ name with “”Inc.”””” or “”LLC”””” dropped.

Read more on www.legalzoom.com

Understanding the distinctions between a trade name and a business name is crucial when beginning a business. Despite their apparent similarity, the two names actually refer to different parts of a company’s identity. We shall examine each phrase and their applications in the business world in this post. Trade names as opposed to business names The name a business chooses to address the general public is known as its trade name. It is used frequently in marketing and advertising since it is the name that clients see and recognize. A trade name does not need to be registered with the government and might differ from a company’s legal name. For instance, “McDonald’s” is merely a trading name for the business, which is officially known as “McDonald’s Corporation.”

A business name, on the other hand, is the official name of a corporation that has been registered with the government. The name on official documents like business licenses, tax forms, and contracts is the name that is used for legal and tax purposes. The company name must be distinct and cannot be the same as a name used by another legally established company in the same state. Registration Name for Business

The legal name that a business uses to register with the government is referred to as the business registration name. This name must be used on all official documents in order to identify the firm for tax and legal purposes. It’s crucial to pick a distinct name for your company’s registration that is not already taken by another registered firm in the same state. Using a Business Name as a Trademark Names, logos, and other identifying marks that are used to set one company apart from another are protected by law under the concept of trademarks. While trademarking a company name is not required, it can add to its legal protection and stop other businesses from using the same name. Businesses that want to protect their brand are frequently advised to register their trademarks with the US Patent and Trademark Office (USPTO). LegalZoom’s starting an LLC service A well-known online service called LegalZoom offers legal aid for new businesses. Although it might be a practical approach to form an LLC, you should be aware that LegalZoom is not a law practice and cannot give you legal counsel. Before choosing LegalZoom, it’s crucial to investigate and evaluate your options because there can be additional fees and expenditures involved. LLC versus S Corporation

Choosing the appropriate legal structure is one of the most crucial decisions you must make when starting a business. S Corps and LLCs are two popular possibilities, and each has pros and cons of its own. LLCs offer flexibility in management and taxation and are easier to start up and run. S Corps can be more difficult to establish up and keep up, but they can provide limited liability protection and tax benefits. In the end, the decision between an LLC and a S Corp is based on the particular requirements and objectives of the company.

In conclusion, it’s critical for any business owner to comprehend the distinctions between trade names, business names, legal names, and trademarks. When launching a business, it’s also critical to do your homework and examine all of your options, including online resources like LegalZoom and the distinction between LLC and S Corp formats. Entrepreneurs may prepare their companies for success by taking the time to comprehend these ideas and make wise choices.

FAQ

What are the different types of business licenses?

General business licenses, professional licenses, occupational licenses, and speciality licenses like liquor licenses or construction licenses are some examples of the various sorts of business licenses that may be required based on the area and nature of the business. Depending on their operations, some businesses can also need government licenses or permissions. To run a business lawfully and avoid potential fines, it’s crucial to do your homework and get the required licenses and permissions.