Understanding Registered, Fictitious, and Trade Names

Determine your DBA requirements based on your specific location. Requirements vary by business structure as well as by state, county, and municipality, so check with local government offices and websites. Unfortunately, some people start a company and then operate under a different (fictitious) name to avoid legal issues. So the DBA/Trade name designation protects consumers by providing information. When you file your DBA, it is usually printed in the local newspaper, so everyone can see who is starting and running that business.

Have questions on formation, banking and taxes?

1. LegalZoom is not a law firm and does not provide legal advice, except where authorized through its subsidiary law firm LZ Legal Services, LLC.
2. Brette is a former attorney and has been a writer and editor for more than 25 years.
3. Registering your DBA name doesn’t provide legal protection by itself, but most states require you to register your DBA if you use one.
4. Depending on your business structure and location, the state may require you to register a legal entity name.

Your business name is one of the first things potential customers notice about your company. With a good business or trade name, your business is one step closer to being successful. One of the first things you do as a business owner is choose a business name. Read on to learn more about business is an invoice a receipt name vs. trade name and how they contrast. A DBA may be registered in a locality (city or county) or a state. In Florida, you can register a D/B/A in a state, but this registration isn’t needed if the business is already registered with the state – as an LLC, partnership, or corporation.

Purchase of Business Agreement

For example, a business might be incorporated as “XYZ Holdings” and do business under the trade name “Alphabet Productions, Inc.” Many LLCs and corporations use a condensed version of their full legal name as their trade name. When it comes to a trade name vs. LLC, the trade name is shorter and https://www.quick-bookkeeping.net/ more user-friendly. As such, it’s easier to incorporate into marketing materials and merchandise. Starting your own business is a rewarding journey, but it can also be incredibly challenging and complex. You’ll need to navigate all sorts of legal requirements, including licensing your business.

We and our partners process data to provide:

This name is fundamentally linked to your company’s legal structure. Generally, a DBA must be registered with a local or state government, or both, depending on the jurisdiction. For example, California, Texas and Virginia require a DBA to be registered with each county (or independent city in the case of Virginia) where the owner does business. Maryland and Colorado have DBAs registered with a state agency. Virginia also requires corporations and LLCs to file a copy of their registration with the county or city to be registered with the State Corporation Commission. A business’s legal name can vary depending on its type of business structure.

Can I use the same trade name as another business?

The best way to find out if you need a DBA is to go to the County Recorder’s office and ask them to help. A trade name is a name a business uses to identify itself to the public. Other terms used in place of trade name are “fictitious name” and “DBA” or “D/B/A.” The recourse vs non-recourse commercial loans application process isn’t complicated, but to apply for an LLC, you’ll have to do some homework first. When you start a business, you spend a lot of time choosing the perfect name—but the name you choose may not end up being the name your business is known by.

You are responsible for reading, understanding and agreeing to the National Law Review’s (NLR’s) and the National Law Forum LLC’s  Terms of Use and Privacy Policy before using the National Law https://www.quick-bookkeeping.net/how-to-do-a-journal-entry-for-purchases-on-a-notes/ Review website. The National Law Review is a free to use, no-log in database of legal and business articles. The content and links on  are intended for general information purposes only.

This is the difference between a trade name and a business name. Deciding what to call 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 unique, memorable, and attention-grabbing. It’s up to 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 and disadvantages.