What you call your business can make or break the success of your business. Of course, there are many things that play a role in the success of your business. But the name of your company is certainly a key element. When it comes to how you call your business, you need to know if it`s more advantageous to use your business name or the business name. Find out the difference between the company name and the trade name below. As an entrepreneur in a state that collects sales taxes, you are required to collect and report sales taxes. A trade name is the official name under which a person decides to do business as a sole proprietor or business. A business name is commonly referred to as a Doing Business as (DBA) name. Legal registration of a trade name is an important step in a company`s branding, but it does not provide unlimited brand names or legal protection for the use of the name. State laws vary in terms of requirements for registering a business name, but most states require registration either with the state government or through an office of a county official. The practical function of registering a business name is mainly for administrative and accounting purposes, such as. B such as filing a corporate income tax return with the Internal Revenue Service (IRS) in addition to your personal income tax return.
The terms trade name and brand seem similar, but it`s important that business owners – especially those in the early stages – know the difference. The selection and registration of trade names and trademarks is an important part of establishing a market presence and brand awareness for a company and its products, so it is a process that must be carefully considered. The law definitely distinguishes between the two – a trade name refers to the official name of the company, while a trademark of a company offers legal protection. Although they are not identical, companies should avoid choosing trade names that are too close to a registered trademark, as this could expose owners to possible lawsuits. Forming an LLC is a great way for business owners to limit their liability for the company`s debt. Here is a step-by-step guide to forming an LLC. Although the registration of a trade name does not offer legal protection, as is the case for the registration of a trademark, the choice of a trade name must still be made with care. That`s because it`s the first step in establishing an identity for your business in the marketplace.
As mentioned above, registering a trade name doesn`t give you trademark rights – it`s a separate process. The legal name of a company may vary depending on the type of business structure. If you operate as a sole proprietorship, the official name of your company is your full name (e.B. Jason Williams). You can include other words with your full name (e.B. Jason Williams Insurance Corporation). However, you will need to provide your full personal name if you have a sole proprietorship. It should be noted that in some states, registering your name does not always prevent other companies from doing business under that name. As a general rule, the right to the trade name belongs to the person who first uses the trade name in relation to his company, not necessarily to the first to register.
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. As your business evolves, you may want (or will need to) change your company`s DBA name. Maybe you`re considering adding a new product line. Or maybe a partner has joined your company. Either way, sometimes you need to shake things up with your company name so that it matches the changes you`re making to your business. A business name can be registered by any type of business such as LLCs, corporations, and nonprofits. Creating certain business entities, filing an adopted name, or registering a trademark can help you protect trade names. If you want to operate under a name other than the legal name of your company, register a business name for your business. Each state and county has different rules for registering a DBA.
Some require a separate fee and request for each database administrator you register. Check with your jurisdiction for more information on registering a business name. For example, Disney Consumer Products and Interactive Media is marked under the trade name The Disney Store, which is more of a shame (and less of a full bite). Once you`ve found the perfect business name to start your business, you need to make sure it`s not already being used by another company in your state. Before submitting all the necessary business documents, most states allow you to retain a desired name for a small fee. However, your business will not be formally incorporated with the name you choose until you submit the incorporation documents. Once you`ve chosen a business name for your new business, you should consider applying for trademark registration in order to extend and protect your company`s rights to the name. Although registration of a trademark is not required, the main benefits of owning a trademark are limited without proper registration. Trademark registration can be applied for at the state or federal level, depending on the scope of your company`s activities and its objectives. One of the first things you do as a business owner is to choose a business name. Your company may operate under your legal name.
Or you can run your business under a trade name. So what`s the difference? Read on to learn more about the company name versus the trade name and how it contrasts. The Secretary of State`s acceptance of your company`s organizational documents and corporate name does not create or protect trademark rights in its trade name. Before you invest a lot of time, energy, and money to develop and create value and goodwill in your brand, you need to do your due diligence to research and select a trade name that is available and that doesn`t violate another person`s trademark rights. This reduces the risk of a trademark infringement issue that could result in the loss of your investment in the brand or even worse, liability for their trademark infringement. Finally, obtaining a trademark registration for your company`s trade name can help you extend and protect its trademark rights. Businesses are looking for memorable and recognizable names that they can use to structure their brand, reach customers, and drive sales. Their goal is to become a household name like Walmart, Amazon or Disney. A trademark requires a separate registration of a trade name, and this must be done at the federal level, not just at the state level. Registering a trademark guarantees a person or company exclusive use of the trademark, legally establishes that the trademark has not already been used by another business entity prior to your registration, and provides official state protection against other companies that subsequently infringe your trademark. It also provides legal liability protection against someone who later claims that you are infringing a previously registered trademark.
You can also configure a database administrator to be part of an existing business. If you want to start a specific business, you can create a DBA with a different name so you don`t have to start another business. DBAs are called holding companies for the company and save you money. At the very least, try to pronounce your business name clearly, eye-catching, and easily, and remember the impressions your name leaves on a potential customer. Use these instructions to find a memorable, brand-compliant, and legal business name. The bottom line is that you don`t have to have a business name, but you might find it helpful to have one. Registering a business name also means that you can accept payments addressed either to the legal name of your company or to the business name of your company. This makes it easier for customers and suppliers, as they don`t have to distinguish between your business name and your business name when making payments. Unlike the rules that apply to the formation of a business entity, which are contained in state law, the rules applicable to trademarks are found in both state law and federal law. But even at the state level, trademark law is distinct from North Carolina and different from its law that governs the legal names of companies.
Therefore, the Secretary of State`s acceptance of your company`s corporate name at the time of incorporation does not mean that he has the right to use that legal name as a trade name for the sale of his products and services. In fact, Section 55D expressly states that the reservation or registration of a company`s legal name under the law does not authorize any use of the legal name that would infringe the rights of others under state or federal trademark law. 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. .