What is meant by trading name?
Trading names are used by companies that do not wish to operate under their registered name, for instance where a trading name was previously used by a company (private incorporation) and a business does not want to confuse their customers by changing its name and brand.
A company or a sole proprietor may conduct business under a name other than its legal name by using a trading name, commonly referred to as a business name. Using trading names is a frequent practice for businesses since it allows them to set themselves apart from rivals and develop a unique brand identity. Although it can be used for marketing and promotion, a trading name does not establish a distinct legal company. The significance of trading names, copyrighting a name, trademarking a business name, and submitting a DBA in Alabama will all be covered in this article. the significance of trading names A company’s trading name is crucial since it aids in building a brand identity and makes it simpler for customers to recognize the organization. Additionally, it allows companies to trade under a name that is more recognizable or simpler to say than their official name. Using a trading name can also aid in separating the operations of the company and the owner’s private issues. The Copyright of a Name It is not feasible to copyright a name because names are not regarded as intellectual property. However, if a name satisfies the criteria for trademark registration, it may be trademarked. Exclusive use of the name and the ability to sue anyone who uses it without authorization are both granted by trademark registration. The process of trademarking a company name Businesses should trademark their trading names to safeguard their brand identification and stop rivals from using a name that sounds similar. Whether a trademark is registered before or after the formation of an LLC, it is best to do so in order to avoid any potential legal complications. Application for a DBA in Alabama For companies doing business under a name other than their legal name, a DBA (doing business as) statement is needed by law. Businesses must submit a DBA to the Probate Court in the county where they are located in Alabama. Depending on the county, filing a DBA in Alabama might cost anywhere between $20 and $50.
Businesses must first select a name that is not being used by another company before filing for a DBA in Alabama. Businesses can file a DBA with the Probate Court by filling out a form and paying the requisite cost after deciding on a name. Businesses must publish a notice of the name change in a regional newspaper for a predetermined amount of time after submitting the DBA.
In conclusion, trading names are a crucial component of a firm since they help to establish a brand identity and set it apart from rivals. Names can be trademarked to safeguard the company’s brand identification even though they cannot be protected by copyright. Before establishing an LLC, it is advised that companies trademark their trading names. Businesses operating in Alabama under names other than their legal names must submit a DBA application to the Probate Court. In Alabama, the fee to file for a DBA varies based on the county, but it typically ranges from $20 to $50.
