Table of Contents Hide
- The Purpose
- What Is A Trade Name?
- Registering A Trade Name
- How to Search Trade Name
- Legal Aspect of Trade Name
- Trade Name FAQ’s
- What is an example of a trade name?
- Can two businesses run under one name?
- Can I run a business without registering?
- Can I do business without an LLC?
- Why should you register a business name?
- Related Articles
A trade name is a name a company uses for their business however, people confuse what it is and all that reflects around it. So, we’ll be seeing the need for registering a trade name, the search, and trade name registration.
A trade name is an official name under which a person or company does business. Moreover, it is generally used by a firm to conduct business under a shorter name rather than their formal and frequently lengthy one. Trading names are particularly important to business owners or partnerships, who frequently do not want to use the legal name of their business. which is often their personal name for marketing, daily transactions, or other purposes.
Trading names are also used when a chosen name cannot be registered, usually because it is already registered or is too similar to an already registered name. In short, customers do business with trade names.
What Is A Trade Name?
A trade name is a name by which your company is popularly known or the name under which you advertise or conduct business. A DBA (doing business as) name is another term for a trade name. Walmart is a fantastic illustration of this. Walmart’s formal business name is Wal-Mart Inc., but its trade name is simply Walmart, and that’s what it says in advertisements and on its website, and what most people call it. However, its formal name, which appears on all government documents (corporation filings, taxes, compliance, and so on), is Wal-Mart Inc.
So, A trading name is usually just the company name with the word “Inc.” removed. So, if your company is registered as Luchy Hair Empire Inc, use that name on your building’s sign, advertisements, and receipts. Your customers are probably only familiar with the name Luchy Hair Empire.
Having a trade name has some advantages. Firstly, It enables you to legally recognize even when your consumers end up calling your company anyhow, as they are likely to abandon the “LLC” or “Inc.” classification. So, By registering a trading name, you can freely use the trade name without fear of misidentifying your firm.
Secondly, A trade name registration also implies that you have a single bank account for both names. So, whether a client writes a check that includes the name “Inc.” or not, you can cash it because the bank has your registration papers for both names.
Registering A Trade Name
Registering a trade name doesn’t really prevent others from using it. A company can have an unlimited number of trade names registered.
Registered trade names will stay in effect indefinitely unless the owner requests that it be canceled. There is no fee to terminate a trading name.
Requirement for registering a trade name
It’s important to remember that before you file your formation papers, you can conduct a name search with the state to see if the name you wish to use is accessible. You may be able to put a hold on a name (for a price) until your documents are ready to submit, but this is not a legal registration of the name.
Secondly, You do not, however, need to acquire a trading name; you can merely do business under your full legal name. Nevertheless, if you wish to use a trading name, you must register it with your state or county. In order to safeguard consumers (by allowing them to verify who truly owns a firm with which they deal), you must submit a fictitious name statement (also known as a DBA filing) by completing a short process, paying a fee, and sometimes publishing a legal notice in a magazine. Finally, Trade name registration is only available to legal entities or general partnerships.
Steps to take in registering a trade name
#1. Check the availability of your desired trade name
The first step in registering a trade name is to ensure that it is genuinely available. To accomplish this, check the state’s business name website to discover if your selected name is already in use. If it is, you must choose an alternative name or your application will be rejected by the state. If the name is not already in use, you may move on to the next step.
Typically, when it comes to trade name registration, the state agency that has jurisdiction over businesses are people you should identify with. You may easily find the right agency by completing a simple Google search. For the vast majority of states, it is the Secretary of State.
#3. Fill out the required form
For trade name registration, most states need you to fill out a form or obtain a certificate. Normally, the form or certificate wants you to submit information such as the legal name of the company, its address, and phone number. However, Some states distinguish between for-profit and non-profit businesses, so you may be asked to give information about your company’s status. Corporations and LLCs may also need to supply the name and contact information for their registered agent.
#4. Submit the forms online or by mail
Once you’ve completed the necessary forms, you must submit them in accordance with state regulations. All states allow you to mail in forms, and some also allow you to submit them electronically. Additionally, there are also third-party firms that will file the papers for you.
Lastly, It is essential that you follow the exact rules and processes for registering a trade name in your state. If you file your application incorrectly, the state may reject it, and you will have to start over.
How to Search Trade Name
To confirm that the name you want to use is available, you must search the Trade Name database (you can make inquiries on Trade Name Search). Moreover, The database is searchable both on-site at the Courthouse/County Store and online at the County Clerk’s website. you can also search from the Courthouse by looking through the Trade Name books in the Record Room.
Legal Aspect of Trade Name
The use of one or more fictitious company name(s) does not result in the formation of one or more different legal entities. Moreover, It is critical to distinguish between a registered legal name and a fake company name, or trade name. because fictitious business names may not necessarily indicate the entity that is legally accountable.
Furthermore, legal arrangements (such as contracts) are typically formed using the business’s registered legal name. However, If a firm fails to consistently follow important legal formalities. Such as utilizing its registered legal trade name in contracts, it may be exposed to corporate veil piercing.
Trade Names are simply a tool many companies or businesses use as a strategy for promotion or marketing, to help sell their products, and for customers to be familiar with.
Trade Name FAQ’s
What is an example of a trade name?
A trade name is a name your business is commonly known as or the name you use when advertising or doing business.
Can two businesses run under one name?
yes!.it is possible and permissible to operate multiple businesses under one LLC. Many entrepreneurs who opt to do this use what is called a “Fictitious Name Statement” or a “DBA” (also known as a “Doing Business As”) to operate an additional business under a different name.
Can I run a business without registering?
It is entirely legal to operate as a sole proprietorship without registering your company. Keep in mind, however, that doing so does not provide you with any form of legal protection if you experience debt or face legal action.
Can I do business without an LLC?
You don’t need an LLC to start a business, but, for many businesses, the benefits of an LLC far outweigh the cost and hassle of setting one up. You can also get those things by forming a corporation or other type of business entity. It’s also perfectly legal to open a business without setting up any formal structure.
Why should you register a business name?
Registering a business name is a legal obligation. if you choose to identify your business with a name that is different from the name of the legal entity that owns the business.