If you are a business owner, you might have thought about operating under a different name. This could be a trade name, fictitious name, DBA (Doing Business As), or entity name associated with an ABN (Australian Business Number). But what do these expressions mean and how do they differ from one another? Trade Name, Assumed Name, or DBA A name that a business uses in addition to its legal name is referred to by one of three terms: a trade name, assumed name, or DBA. The legal name of the company is not altered by using this moniker; it is typically used for marketing and advertising. For instance, John Smith, who owns the bakery “John’s Bakery,” may apply for a trade name, assumed name, or DBA with the relevant government body if he wanted to market his company as “Sweet Treats Bakery.” As a result, he is permitted to use the name “Sweet Treats Bakery” on his promotional materials, but his actual legal company name is still “John’s Bakery.”
Assumed name is also referred to as a “fictitious name” or “trade style name.” It is crucial to remember that using a trade name, assumed name, or DBA does not give the business owner any legal protection or liability protection. This is because even when the name has changed for marketing purposes, the legal corporation is still the same. ABN Entity Name
The name that is registered with the Australian Business Register (ABR) for a company that has an ABN is known as an ABN entity name in Australia. This name, which may be used for marketing purposes, need not be the same as the company’s legal name. The ABN entity name, on the other hand, is legally binding and is registered with the government, unlike a trade name, assumed name, or DBA. The distinction between a DBA and a sole proprietorship is
It is crucial to understand that using a DBA does not alter the company’s legal structure. The fact that a business owner is still a sole proprietor whether they file for a DBA does not change the way they conduct business. Simply put, the DBA enables them to promote their products under a different name. Is an ABN considered a sole proprietorship?
An ABN is not a sole proprietorship; rather, it is a registration number that the Australian government has given to a company. No matter what kind of entity it is—a sole proprietorship, partnership, corporation, or trust—a firm can get an ABN.
Finally, choosing a new name for your company can be a helpful marketing strategy, but it’s crucial to comprehend the many terminology and their legal ramifications. An ABN entity name is a legally binding name that is registered with the government, whereas a trade name, assumed name, or DBA is merely a name used for marketing purposes. A sole proprietorship’s legal structure is unaffected by the filing of a DBA, and an ABN is not a legal designation given to a sole proprietorship but rather to a business.
The fact that a DBA (Doing Business As) name does not offer the same level of legal protection or liability protection as a registered business entity like an LLC or corporation is one of the drawbacks of utilizing one. This implies that the owner’s personal assets may be at stake if the company is sued. Additionally, utilizing a DBA name could not always be acknowledged by banks, suppliers, or other companies, which could cause issues when transacting money or forming partnerships. Last but not least, a DBA name might not provide the same amount of trust or brand awareness as a registered business name.