A trade name is a name that a company uses to identify itself and is different from its legal name. It is often referred to as a DBA (doing business as). A trade name primarily serves as a marketing tool that aids in the development of a company’s identity and brand in the marketplace. It’s crucial to understand that a trade name does not establish a different legal entity from the company that owns it.
The procedure for registering a trade name differs from state to state in the United States. Businesses must register their trade names with the Ohio Secretary of State, for instance, in Ohio. In Ohio, registering a trade name costs $39.00. It is crucial to remember that registering a trade name does not give that name any legal protection. It could be essential to register a trademark in order to protect a commercial name.
In Ohio, limited liability companies (LLCs) must pay an annual charge of $200.00 to preserve their status as such. This payment must be made before the last day of the month that marks the LLC’s creation. The LLC may be formally dissolved if the annual fee is not paid.
A personal name is an individual’s legal name, but a trade name is the name that a business uses to identify itself. This is one of the primary distinctions between a trade name and a personal name. For instance, if John Smith runs a company called Smith’s Plumbing, Smith’s Plumbing is his trade name rather than his given name. It is crucial to remember that choosing a personal name as a trade name may cause misunderstandings and may fail to clearly convey the nature of the business to potential clients.
There are a number of things to think about while deciding between an LLC and a sole proprietorship. The simplest and most affordable business structure is a sole proprietorship, but the owner has no liability protection. An LLC, on the other hand, protects the owner from responsibility and is frequently selected by companies that have sizable assets or participate in high-risk operations. It’s crucial to seek advice from a legal or financial expert when determining which business form is ideal for your particular circumstance.
In summary, a trade name is a moniker that a company uses to distinguish itself from its legal name. While registering a trade name is crucial for building a brand and identity in the marketplace, it does not give that name any legal protection. Businesses can make well-informed choices that will promote their growth and success by being aware of the distinctions between personal names and trade names as well as the advantages and disadvantages of various business structures.
You can reserve a company name, of course. In reality, before registering a trade name or company name formally, several US states permit enterprises to hold onto them for a set amount of time. This allows the company enough time to prepare and collect the required information before submitting an application for registration. It’s crucial to remember that reserving a name does not ensure that the registration of that name will be permitted. The name will still need to pass the relevant inspections and demands to guarantee that it satisfies the legal requirements for a trade name or corporate name.