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Trade Name vs. Business Name What's the Difference | Brealant

When starting a business, you spend a lot of time deciding on the right nameu2014but it's possible that the name you pick will not be the name by which your company is recognized. This is the distinction between a business name and a trade name.

Aliciaowens
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Trade Name vs. Business Name What's the Difference | Brealant

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  1. Presentationby Linneaoberoi MarketingDirector www.Brealant.com

  2. Whenstartingabusiness,youspendalot oftimedecidingontherightname—butit's possiblethatthenameyoupickwillnotbe thenamebywhichyourcompanyis recognized.Thisisthedistinctionbetween abusinessnameandatradename. Ifyourcompanyendsin"Inc."or"LLC,"you maynoticethatyoudon'tusethoseletters while advertising or talking about it. You'll needtoundertakesomemore documentationtocoveralltheidentitiesyou usetoprotectyourselfandyourbusiness nameandfulfilllegalrequirements.

  3. LEGAL BUSINESSNAME Yourcompany'slegalnameisthenameyouuse onthepaperworkyoufiletostartitup.Itisthe nameonthecorporatepaperworkyousubmitwith yourstate,includingthearticlesofincorporation, if you own a corporation. It's the name on the LLC formation paperwork you file with the state if it's an LLC. By filing such documents, you formally establishyourcompany'slegalname.Thisisalso thenameonyourtaxIDoremployeeidentification documentsandthenameonyourtaxreturns. Yourcompany'slegalnameistheformal,official name that the government uses to identify it. If youownabusiness,yournamemostlikely includesthewords"Inc.""CuteBootsInc.,for example.IfyourcompanyisanLLC,yourname willalmostcertainlyendin"LLC,"Valley WoodworkLLC.

  4. TRADENAME Atradenameisanamebywhichyour companyisrecognizedorthenameunder whichyouadvertiseordobusiness.ADBA (doing business as) name is another term for atradename.Walmartisafantastic illustration of this. Walmart's formal business name is Wal-Mart Inc., but its trade name is simplyWalmart,whichitusesin advertisementsandonitswebsite,andwhich mostpeoplerefertoitas.However,Wal-Mart Inc.isthelegalnamethatappearsonall governmentdocumentation(corporation filings,taxes,compliance,andsoon). Atradenameisgenerallyjustthecompany's namewithoutthe"Inc."or"LLC."Ifyourcompany isregisteredasTasha'sDogGroomingLLC,use thatnameonyourbuilding'ssign, advertisements,andreceipts.Tasha'sDog Groomingismostlikelythenameyour consumersarefamiliarwith.

  5. Acompany'stradename,ontheotherhand, mightbecompletelydifferentfromitslegal name.Youmayhaveregisteredyour companyasJameel'sBookStoreLLC,but youchoosetocallitBestBooksinstead sinceitismorememorableorjustshorter. Somebusinessesadoptdistincttradenames fordifferentaspectsoftheiroperations.Gap Inc.,forexample,doesbusinessasOldNavy, Athleta,andtheBananaRepublic,even thoughGapIncownsallthreebrands. Youarenotforcedtohaveatradename, althoughyoumaydiscoverthathavingoneis beneficial.

  6. REQUIREMENTS FOR REGISTRATION Youmustregisteryourcompany'sformal business name with your state if you are foundingacorporationorLLC.Thenameis registeredaspartofyourformalcompanyor LLCregistrationpapers.Yourlegalnameis whateveryouuseinthosedocuments.Thereis noneedtoregisterseparately. Youdon'tneedatradenametodobusiness;you mayuseyourcompletelegalname.However,if youutilizeatradename,youmustregisteritwith your state or county. You must submit a fake namestatement(oftenjustcalledaDBAfiling)to safeguardcustomers(sotheycanverifywho ownsabusinesstheyengagewith)byfillingouta simpleform,payingafee,andoccasionally postingalegalnoticeinthenewspaper.

  7. BENEFITSOF TRADENAMES Havingatradenamehas various advantages.Itpermitsyoutolegally acknowledgewhatyourconsumersmay endupcallingyourcompanybecause theyarelesslikelytoutilizetheterms "LLC"or"Inc."Byregisteringatradename, youmayuseitwithoutfearof misrepresentingyourcompany. solution Youcanonlyhaveonebankaccountfor bothidentitiesifyouregisteratrading name.Youmaycashachequewrittento Meema'sAutoRepairInc.orjustto Meema'sAutoRepairsincethebankhas yourregistrationpaperworkforboth names.

  8. DRAWBACKSOF TRADENAMES Themostsignificantdisadvantageofatrade nameisthat,inmostjurisdictions,registering onedoesnotgrantyouexclusiverightsto useit.Ifyourcompany'slegalnameis Sandy'sIceCreamLLC,butyourtradename isYummyIceCream,anyothercompany mightuseit.Incertainstates,thefirst companytofileforaDBAisgrantedtheright touseit.Youmighthavebeenusingthe nameYummyIceCreamforayearbefore registeringit,butifTia'sIceCreamLLChas alreadyregisteredit,youwon'tbeableto useitifyourstatefollowsthislaw.

  9. Theonlywaytobesurethatyouhave exclusive rights to a trade name is to registeritasatrademarkwithyourstate's companyregistrationoffice,whichisa morecomplicatedandexpensive procedure. Yourstatemayrequireyoutorenewyour DBAfileeveryfewyearsorregisteritineach countywhereyouwanttoconductbusiness. Thisentailsfillingoutpaperworkandpaying feesineachcounty,whichmayquicklymount up.

  10. CONTACT US BREALANTINC COMMERCEANDINDUSTRYPLAZA 1030CAMPUSAVENUE,CORNERPARKAVENUE 4THFLOOR,UNITSC&D MCKINLEYHILL,FORTBONIFACIO, TAGUIG,NCR PHILIPPINES,POSTCODE1634 +639173113000 PHONE:+8613609683025 US:+525615392318 SUPPORT@BREALANT.COM

  11. THANKYOU!!!

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