Your business’ legal name is the name that you use on the paperwork you file to create your business. If you own a corporation, it is the name on the corporation papers you file with your state, including https://www.quick-bookkeeping.net/can-i-get-a-tax-refund-with-a-1099-even-if-i-didn/ the articles of incorporation. If it is an LLC, it is the name on the LLC formation papers you file with the state. By filing those papers, you officially designate the legal name of your business.
What is a legal business name?
In Argentina, a trade name is known as a nombre de fantasía (‘fantasy’ or ‘fiction’ name), and the legal name of business is called a razón social (social name). A trade name is commonly referred to as a fictitious name or DBA (doing business as) name. Instead of operating under the full legal name, a business can operate under a different name or an abbreviated name. For sole proprietors, your business name will automatically be your legal name.
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Your registered business name is the one used for taxes and legal matters. Your DBA can also be something entirely different than your legal business name. This is a common practice among sole proprietors that don’t want to use their legal name, but limited liability companies, partnerships, and corporations frequently use trade dividend payout ratio definition formula and calculation names as well. You are not required to have a trade name; you can simply do business with your full legal name. But if you choose to use a trade name, you will need to register it with your state or county. Limited liability companies (LLCs) and corporations must establish their legal names when registering the business.
Do I need to register a trade name if I have an LLC?
Any legal analysis, legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. So you did all the hard work that was necessary https://www.quick-bookkeeping.net/ to get a new business off the ground. And you formed a new business entity with the Secretary of State to conduct that business, such as a corporation or limited liability company (“LLC”). To register a trade name, you need to file a DBA with either your state or local government, depending on local laws.
Trade name vs. business name: What’s the difference?
And, the process may vary depending on your business structure. Every U.S. state has different processes and names for these different types of registrations. The best place to find information about business name registration is the website of yourstate’s secretary of state.
Doing that correctly will require you to know the difference between a trade name vs. LLC. In Brazil, a trade name is known as a nome fantasia (‘fantasy’ or ‘fiction’ name), and the legal name of business is called razão social (social name). The biggest drawback of a trade name is that, in most states, registering a trade name does not give you the exclusive right to use that name.
If your business is headquartered in another country, like the United Kingdom or Canada, you’ll need to file a request with the appropriate entity in your home nation. Again, the process should involve checking whether someone else is using the name, filing an application, and paying a fee. A trade name is the name your business is commonly known as or the name you use when advertising or doing business. Walmart’s legal business name is Wal-Mart Inc. but its trade name is just Walmart—that’s the name it uses on its advertising and website, and what most people refer to it as. However, its legal name, which appears on all of the paperwork involving the government (corporation filings, taxes, compliance, etc.) is Wal-Mart Inc.
The name your customers know is likely just Tasha’s Dog Grooming. This is not intended as legal advice; for more information, please click here. As your business evolves, you may find yourself wanting (or needing) to change the DBA name of your company. Whatever the case may be, sometimes you need to shake things up with your business name to have it align with the changes you are making to your company.
- If you are forming a corporation, list the name as it appears in the state database in your Articles of Incorporation.
- A business’s legal name can vary depending on its type of business structure.
- Typically, a business will have both a legal business name as well as a trade name.
- And, the process may vary depending on your business structure.
- You and your business are considered one, in the eyes of the law and the IRS, so if your name is Jane Doe, your legal business name is Jane Doe.
That’s why most small business owners file for an LLC or other type of entity. Check out our breakdown of LLCs vs. sole proprietorships to see whether forming an LLC might be right for you. A limited liability company (LLC) is a specific type of business entity, and it’s very what is the margin of error and how to reduce it in your survey different from your trade name. Depending on the nature of your business venture, you might need both or neither. In this trade name vs. LLC breakdown, you’ll learn the subtle differences between these two name types so you can use them to achieve your business goals.
You’ll see several different ways to talk about your business name, and they can be confusing. Do you have funding questions about your business, such as EIDL applications, SBA loans, or other business financing questions? In this article, we explain the difference between a business name and a trade name, the pros and cons of using a trade name, and how to register for one. The bottom line is that you are not required to have a trade name, but you might find having one comes in handy. Brette is a former attorney and has been a writer and editor for more than 25 years.
A trade name is the official name under which an individual as a sole proprietor or a company chooses to do business. A trade name is commonly known as a doing business as (DBA) name. Registering a trade name legally is an important step in branding for a company, but it doesn’t provide an unlimited brand name or legal protection for the use of the name.