For example, the Trader Joe’s business name is Trader Joe’s Co., but their customer name will always be Trader Joe’s. When you find the perfect business name to set up your company, you have to make sure that it isn’t already being used by another business in your state. Before filing all of the necessary business paperwork, you can place a hold on a name you want for a small fee in most states. However, your business won’t officially be formed with the name you’ve chosen until you file business formation documents. A trade name is usually registered with the county where the business is located, as a fictitious name or d/b/a (doing business as) name.
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Once you register your domain name, no one else can use it for as long as you continue to own it. Now that they’ve picked a name for the business, they start to build its presence online. John and Kelly create a Facebook page for their business, adding the address, hours, and phone number, as well as photos of the building. John and Kelly understand that a name is one of the most important parts of their auto repair shop.
How to File a Trade Name
Limited liability companies (LLCs) and corporations must establish their legal names when registering the business. Unlike other business structures, the business legal name for LLCs and corporations does not have to include any of the owners’ names to be the business name. However, some states require LLCs and corporations to include “LLC” or “Corporation” in their legal name (e.g., Rockwell Technology LLC). One thing that isn’t so different when considering a trade name vs. business name is that they both require registration. If you are forming a corporation or LLC, you are required to register your company’s legal business name with your state. Registration of the name is simply part of your official corporation or LLC business paperwork.
How do I create a catchy business name?
2024 is one of the best years ever to start an LLC, and you can create yours in only a few steps. Numbered companies will very often operate as something other than their legal name, which is unrecognizable to the public. Having a trade name can be good idea if your trade name is easier for customers to say and remember.
A corporation’s legal business name is the one registered with the state. The corporate identifier is either “Inc.” or “Corporation.” Typically, small businesses won’t form corporations, as the internal structure of these entities is complex. Your business’s legal name is the name on the paperwork you filed when you registered your business. If you have an LLC, the business name is the name recorded on the Articles of Organization. If you have a corporation, it’s the name on the Articles of Incorporation. One of the most important steps you take when starting a business is deciding on the name of your business.
Trade Name vs. Business Name: What’s the Difference?
The business name is the legal name that your business filed with your state when you set up your LLC, corporation or other business structure. You will also need to apply for a trade name registration if your sole proprietor business name is different from your own name. An entity or legal business name is the one that’s used to register the business with a state. A trade name can be different from the legal name the business has been registered as, for corporate status. For example, a business might be incorporated as “XYZ Holdings” and do business under the trade name “Alphabet Productions, Inc.”
Keep in mind that you may want to protect your company’s name in several top-level domains (TLDs). This means not only .com, but perhaps .org, .biz and other (TLDs). The fact that a trade name is typically not unique can cause problems for your business if someone chooses to use the same trade name.
Generally, a DBA must be registered with a local or state government, or both, depending on the jurisdiction. For example, California, Texas and Virginia require a DBA to be registered with each county (or independent city in the case of Virginia) where the owner does business. Maryland and Colorado have DBAs registered with a state agency. Virginia also requires corporations and LLCs to file a copy of their registration with the county or city to be registered with the State Corporation Commission. When you start an LLC or corporation, you’ll need to list your company’s name when you file paperwork with the state. However, the business name doesn’t necessarily have to be the customer-facing name that you use.
Like any aspect of your business, it is important to do research on the process of picking a name and what is available to you. There will be differences based on the laws of the state where you incorporate or file formation paperwork. Some states require you to refile for the right to use your trade name as your front-facing name in conjunction with your legal business name. It’s important to keep up to date on these filings so you’re not inadvertently hampering your ability to do business under your trade name. Paying a fee every time could be a financial barrier to having a trade name that is separate from your legal business name.
His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag. Julia is a writer in New York and started covering tech and business during the pandemic. A trade name can also give you the freedom to try out new product or service lines under a different name without setting up a new company.
List out the business names you like and do your homework on whether they are available to use. 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 and must be included in the partnership agreement. Your business name is one of the first things potential customers notice about your company. With a good business or trade name, your business is one step closer to being successful.
Next, search for the names on your list to ensure that it isn’t already spoken for. Most states have an online database where you can search for business names. Even if a name is available, you may not want to use it if it is too similar to another business in your state. Doing so can lead to confusion among customers or legal troubles.
- Starting your own business is a rewarding journey, but it can also be incredibly challenging and complex.
- Some states require you to refile for the right to use your trade name as your front-facing name in conjunction with your legal business name.
- They ultimately choose the name “J&K Auto Repair.” It’s professional, personal (using the first initial of each of their first names), and straightforward.
- The fact that a trade name is typically not unique can cause problems for your business if someone chooses to use the same trade name.
It’s the name that appears on all formal documents, including your tax filings, legal contracts, and banking information. This name is fundamentally linked to your company’s legal structure. 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).
The Small Business Administration (SBA) website provides search tool for the specific trade name registration requirements in each state. Your DBA can also be something entirely different than your legal business name. You might need to register your DBA — also known as a trade name, fictitious name, or assumed name — with the state, county, or city your business is located in. Registering your DBA name doesn’t provide legal protection by itself, but most states require you to register your DBA if you use one.