One of the first things you vì chưng as a business owner is choose a business name. Your business can operate under your legal business name. Or, you can operate your company under a trade name. So, what’s the difference? Read on lớn learn more about business name vs. trade name and how they contrast.quý khách hàng vẫn xem: Legal name là gì
Business name vs. trade name
What you điện thoại tư vấn your business can make or break your company’s success. Sure, there are a lot of things that play a role in how successful your business is. But, your business’s name is definitely a key component.
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Your business name is one of the first things potential customers notice about your company. It connects your customers to lớn your products or services. With a good business or trade name, your business is one step closer khổng lồ being successful.
When it comes khổng lồ what you Điện thoại tư vấn your company, you need to lớn know whether it’s more beneficial khổng lồ use your business name or trade name. Find out the difference between business name và trade name below.
What is a business name?
A business name is your business’s legal name. It is the official name of the person or entity that owns a company. And, it’s the name you use on your government forms và business paperwork.
A business’s legal name can vary depending on its type of business structure. If you operate as a sole proprietorship, your business legal name is your full name (e.g., Jason Williams). You can include other words along with your full name (e.g., Jason Williams Insurance Corporation). However, you must include your full personal name if you have a sole proprietorship.
If you are an owner of a general partnership, the business name is typically a combination of the last names of the partnership’s owners và must be included in the partnership agreement.
Limited liability companies (LLCs) & corporations must establish their legal names when registering the business. Unlike other business structures, the business legal name for LLCs & corporations does not have sầu khổng lồ include any of the owners’ names khổng lồ be the business name. However, some states require LLCs và corporations khổng lồ include “LLC” or “Corporation” in their legal name (e.g., Rockwell Technology LLC).
What is a trade name for small business?
If a business owner wants to lớn operate under a different name other than the company’s legal name, they can use a trade name instead.
A trade name may also be called a doing business as (DBA) name. It’s the name the public sees. Think of it as your business’s nickname. Businesses may use their trade or DBA name for kinh doanh and sales purposes instead of their legal business name lớn help draw in more customers.
If you want lớn operate under a different name than your legal business name, register a trade name for your company. Every state & county has different rules for registering a DBA. Some require a separate fee and application for each DBA you register. Chechồng with your jurisdiction for more information about registering a trade name.
Using business legal name vs. trade name: Pros and cons
Typically, a business will have both a legal business name as well as a trade name. The legal one, as mentioned, appears on legal documents and government forms. On the other hvà, a trade name generally appears on advertisements và signs.
It’s up lớn the business khổng lồ determine whether or not it can benefit from using a trade name in place of their legal business name. Using a DBA or trade name has its advantages & disadvantages. Before you decide lớn use a trade name instead of your legal name for business, consider the following pros & cons of using a trade name.
Pros of utilizing a trade name:Can be inexpensive to register a trade nameGives your business more credibilityHelps differentiate brands if you have sầu a variety of productsAllows you khổng lồ further clarify your business’s purpose
Cons of a trade name:Potential extensive sầu application proceduresTypically only valid in the jurisdiction you filed in (may have to file for another if you want lớn operate elsewhere)
Choosing a name for your business
Deciding what to điện thoại tư vấn your business is not as easy as it may sound. The name of your company tells consumers a lot about your business. So, you need a name that is chất lượng, memorable, và attention-grabbing.
To choose the perfect name for your business, you should:Think about how lớn apply your business’s message lớn its namePick something that is easy to pronounce và memorizeAvoid using hard-to-spell or lengthy words in the nameEnsure the name isn’t already taken (check domain names, vì chưng a tìm kiếm online, run a trademark tìm kiếm, etc.)Ask your family, friends, và team for feedback on the name
Selecting a business name to lớn operate under is a big step. It takes some trial & error, patience, & time khổng lồ choose the right name. List out the business names you like & vì your homework on whether they are available khổng lồ use. If the name is already taken, go baông chồng lớn the drawing board.
After you decide what lớn name your business & check its availability, register the name with your state.
Changing the name of your company
Switching your business name requires a little legwork on your kết thúc. And, the process may vary depending on your business structure.
Generally, you must follow the steps below khổng lồ change your business name:Cheông chồng for availability of the new business nameLiên hệ the Secretary of State khổng lồ inform them of the DBA change (unless you operate as a sole proprietorship*)Notify federal & state tax agencies that your company name has changedLiên hệ your bank to change your DBA name on your accountRevise the name on your business licenses and permits by contacting your county, thành phố, or local government authorityNotify the IRS of the new DBARevise business paperwork, such as contracts, agreements, leases, bank accounts, và loan documents khổng lồ include the new nameUpdate your business trang web, signs, & other branding materials with the new name
*You must tệp tin a new DBA registration if you operate as a sole proprietorship
Regardless of what name you operate under, you need lớn keep track of transactions. Patriot’s online accounting software is easy-to-use & offers không lấy phí, USA-based support. Try it for không lấy phí today!