Introduction to Trade Names and DBA
A trading style or trading name is a name a business chooses to use in addition to their official registered name. A trade name may also be called a doing business as (DBA) name. It’s the name the public sees.
Understanding DBA (Doing Business As)
Short for “doing business as," a dba is a fictitious name that businesses can use to operate under a different name than their legal business name. The primary goal is to operate a business entity, such as a limited liability company (LLC), under a name distinct from its official designation.
Differences Between Business Name and DBA
A business name is the official name of a company, while a DBA (doing business as) trade name is a name used by a company for marketing and branding purposes.
Benefits and Function of DBA
A DBA is simply a way for a business to operate under a different name, while a corporation or LLC is a legal entity that offers limited liability protection and allows the business to raise capital.
Importance of DBA Filing for Business Operations
The formation of a business bank account at your bank calls for a DBA. A DBA is typically necessary for sole proprietors and partners in general partnerships to open a business bank account.
How to Register a DBA
A DBA (doing business as) name is easy to create and file. The guidelines and filing process to register a DBA vary by state, and can sometimes vary by county or city.
Case Example: DBA Tradestyle in Business
A DBA (Doing Business As) Tradestyle is simply the name that a business uses to run or carry out its business activity.
Requirement of DBA Registration
When establishing a DBA in any state, it is necessary to file a DBA registration form with the appropriate state agency.
Conclusion
A trade name offers advantages to a small business owner, aiding in sales and marketing to attract more customers. Companies don’t need different names but can choose to have them.