Business name là gì

One of the first things you do 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 to lớn learn more about business name vs. trade name and how they contrast.

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Business name vs. trade name

What you Call 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 to lớn being successful.

When it comes to lớn what you điện thoại tư vấn your company, you need lớn know whether it’s more beneficial lớn use your business name or trade name. Find out the difference between business name and 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) và corporations must establish their legal names when registering the business. Unlượt thích other business structures, the business legal name for LLCs và corporations does not have sầu to lớn include any of the owners’ names khổng lồ be the business name. However, some states require LLCs and corporations to 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 lớn 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 to lớn have sầu their business name and 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 kinh doanh and sales purposes instead of their legal business name lớn help draw in more customers.

If you want to 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 & 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 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 & government forms. On the other hvà, a trade name generally appears on advertisements và signs.

It’s up khổng lồ the business to 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 và cons of using a trade name.

Pros of utilizing a trade name:

Can be inexpensive sầu to register a trade nameGives your business more credibilityHelps differentiate brands if you have sầu a variety of productsAllows you to lớn 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 lớn operate elsewhere)

Choosing a name for your business

Deciding what to lớn 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, & 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 lớn pronounce và memorizeAvoid using hard-to-spell or lengthy words in the nameEnsure the name isn’t already taken (check domain names, vì a tìm kiếm online, run a trademark search, etc.)Ask your family, friends, và team for feedbaông chồng on the name

Selecting a business name to lớn operate under is a big step. It takes some trial và 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 lớn use. If the name is already taken, go baông xã khổng lồ the drawing board.

After you decide what khổng lồ name your business & kiểm tra 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) to 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 khổng lồ have it align with the changes you are making to lớn your company.

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

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

Check for availability of the new business nameContact the Secretary of State to insize them of the DBA change (unless you operate as a sole proprietorship*)Notify federal và state tax agencies that your company name has changedLiên hệ your bank lớn change your DBA name on your accountRevise the name on your business licenses and permits by contacting your county, city, or local government authorityNotify the IRS of the new DBARevise business paperwork, such as contracts, agreements, leases, bank accounts, and loan documents to include the new nameUpdate your business trang web, signs, and 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 lớn keep traông chồng of transactions. Patriot’s online accounting software is easy-to-use & offers free, USA-based support. Try it for không tính phí today!