Business Name Là Gì

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One of the first things you bởi 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.

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Business name vs. trade name

What you Gọi 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.

Your business name is one of the first things potential customers notice about your company. It connects your customers khổng lồ your products or services. With a good business or trade name, your business is one step closer khổng lồ being successful.

When it comes lớn what you hotline your company, you need khổng lồ know whether it’s more beneficial to 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 and 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 sầu 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 & must be included in the partnership agreement.

Limited liability companies (LLCs) and corporations must establish their legal names when registering the business. Unlượt thích other business structures, the business legal name for LLCs & corporations does not have sầu to include any of the owners’ names to lớn be the business name. However, some states require LLCs và corporations lớn 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 operate under a different name other than the company’s legal name, they can use a trade name instead.

A trade name does not need to include additional words or legal phrases (e.g., Corp, LLC, etc.). For example, a company’s trade name is Mike’s, but their legal business name is Mike’s Corporation. A business can opt khổng lồ have their business name & trade name be the same.

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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 sale and sales purposes instead of their legal business name to 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 và county has different rules for registering a DBA. Some require a separate fee và application for each DBA you register. Chechồng with your jurisdiction for more information about registering a trade name.

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Using business legal name vs. trade name: Pros & 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 & signs.

It’s up to lớn the business to lớn 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 and disadvantages. Before you decide to 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 sầu to lớn register a trade nameGives your business more credibilityHelps differentiate brands if you have a variety of productsAllows you khổng lồ further clarify your business’s purpose

Cons of a trade name:

Potential extensive application proceduresTypically only valid in the jurisdiction you filed in (may have sầu khổng lồ tệp tin for another if you want khổng lồ operate elsewhere)

Choosing a name for your business

Deciding what to Gọi 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 quality, memorable, and attention-grabbing.

To choose the perfect name for your business, you should:

Think about how to lớn apply your business’s message to lớn its namePick something that is easy khổng lồ pronounce và memorizeAvoid using hard-to-spell or lengthy words in the nameEnsure the name isn’t already taken (kiểm tra tên miền names, vày a tìm kiếm online, run a trademark tìm kiếm, etc.)Ask your family, friends, và team for feedbaông chồng on the name

Selecting a business name lớn operate under is a big step. It takes some trial & error, patience, and time khổng lồ choose the right name. List out the business names you lượt thích & bởi your homework on whether they are available to lớn use. If the name is already taken, go bachồng to lớn the drawing board.

After you decide what lớn name your business and check its availability, register the name with your state.

Changing the name of your company

As your business evolves, you may find yourself wanting (or needing) khổng lồ change the DBA name of your company. Maybe you are planning on adding a new line of products. Or, maybe a partner joined your company. Whatever the case may be, sometimes you need lớn shake things up with your business name lớn have it align with the changes you are making lớn your company.

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Switching your business name requires a little legwork on your end. And, the process may vary depending on your business structure.

Generally, you must follow the steps below lớn change your business name:

Cheông chồng for availability of the new business nameLiên hệ the Secretary of State to inkhung them of the DBA change (unless you operate as a sole proprietorship*)Notify federal và state tax agencies that your company name has changedContact your bank lớn change your DBA name on your accountRevise the name on your business licenses & permits by contacting your county, thành phố, or local government authorityNotify the IRS of the new DBARevise business paperwork, such as contracts, agreements, leases, ngân hàng accounts, và loan documents to lớn include the new nameUpdate your business website, signs, và other branding materials with the new name

*You must file a new DBA registration if you operate as a sole proprietorship

Regardless of what name you operate under, you need to lớn keep traông chồng of transactions. Patriot’s online accounting software is easy-to-use và offers không tính phí, USA-based tư vấn. Try it for không tính phí today!