What Is a Business Legal Name Vs Trade Name

You will need a unique name for your business in the legal business name that will be submitted to the government. For the trade name, it depends on where your business is located and whether the name you want to use is associated with a trademark. You don`t need an LLC to start a business, but for many businesses, the benefits of an LLC far outweigh the cost and effort of creating it. The legal name is the official official name of your company that identifies it to the government. If you have a business, your name will likely include the name „Inc.“, e.B. Cute Boots Inc. If your business is an LLC, your name probably includes „LLC,“ such as Valley Woodwork LLC. In this article you will find answers and much more. This article will end the debate on (legal) trade names versus trade names once and for all.

Companies may use their trade names for sales or promotional purposes. Think of them almost as a nickname for the company. A business name is the forward-looking name that customers and customers know as your business. For this reason, it is also known as DBA – the name by which you „do business“. Many companies have abandoned their registered company name with „LLC“ or „Inc.“ as their trade name. For example, the company name of trader Joe Trader is Trader Joe`s Co., but his client name will always be Trader Joe`s. Clearly, this trademark infringement test is very different from the standards that apply to the Secretary of State`s adoption of a company`s legal name under Section 55D. Whether the trade name of your new business is in fact confusingly similar to someone else`s trademark for trademark infringement purposes is a much broader and more subjective examination than whether their trade name is simply distinguishable from that trademark. Unfortunately, many new business owners only learn this after receiving a cease and desist letter from someone claiming that the company name infringes their trademark rights. If the infringement complaint is valid, the business owner may need to adopt a different business name.

This can mean the loss of all the time, energy and money invested in brand awareness of the abandoned name. If you use a business name other than the registered name of the company, the public has the right to know who actually runs the company. So you`ll need to submit a fictitious name (sometimes called a d/b/a statement, to „do business like“) to your county. A trade name does not need to contain additional words or legal phrases (e.B. Corp, LLC, etc.). For example, a company`s trade name is Mike`s, but its official trade name is Mike`s Corporation. A company may choose to have its company name and trade name identical. The fact that a business name is usually not unique can cause problems for your business if someone chooses to use the same business name. You will need to register to use the trade name, but this usually does not give you the exclusive rights to the name. However, in some states, registering a business name gives you exclusive access to it. It depends on where you are, so you should check your local laws and contact an expert to be sure.

Once you`ve decided how you want to name your business and check its availability, register the name with your state. A trade name can also be called a Doing Business (DBA) name. That`s the name the public sees. Think of it as your company`s nickname. Businesses can use their trade name or DBA for marketing and sales purposes instead of their legal trade name to attract more customers. A trade name is usually just the name of the company, with „Inc.“ or „LLC“ omitted. So, if your business is registered under the name Tasha`s Dog Grooming LLC, the name on the sign on your building, ads and receipts. The name your customers probably know is just Tasha`s Dog Grooming. Having a trade name has certain advantages.

It allows you to legally recognize what your customers might end up calling your business, as they are likely to drop the „LLC“ or „Inc“ designation. By registering a business name, you can freely use the business name without fear of misidencing your business. If you end up with a complicated legal business name, finding an easier and more eye-catching business name for customers might be the right step. To ensure that you have the exclusive right to use your trade name, you may need to register a trademark for it. A business name can be a good idea if your business name is easier for customers to say and remember. While most people know what LLC or Inc. or Co. means, it can seem cumbersome at the end of a smart business name.

Supporting LGBTQ+ businesses in June – Pride Month – is all well and good, but it`s also important to buy and empower this community of entrepreneurs and the businesses that champion them throughout the year. A business name is one of the first things that connects a customer to a company`s products or services. Just be sure to register your business names and follow all the necessary steps to file a DBA. Please note that these requirements may vary from state to state. You will need to verify the naming requirements to register your business name with state and local authorities. Corporations, LLCs, limited partnerships, and similar business units are creatures under state law. They are created according to the law of a particular state, and the law of the state regulates various aspects of their existence. One of these aspects is their legal name for the purpose of doing business in a state.

In North Carolina, Chapter 55D of the General Laws of North Carolina („Chapter 55D“) sets out the basic requirements for the legal name that a business entity may take, and there are relatively few in number. Filing a business name doesn`t establish a new business – a trade name is simply a nickname for the business you already have. Requirements vary by state and location, but you will generally need to file a business name if you use a name other than the official legal name of your LLC or company. Sole proprietorships and partnerships are generally required to file a DBA if they use a name other than their own surname. If you own a partnership, the partnership name is usually a combination of the surnames of the partnership owners and must be included in the partnership agreement. Some states require you to resubmit the right to use your business name as the front name in connection with your company`s legal name. It is important to stay informed about these submissions so as not to accidentally hinder your ability to do business under your business name. Paying a fee each time could be a financial barrier to a business name separate from your company`s legal name. .