What Is the Difference Between a Trade Name and an LLC?

Overview of LLC and Trade Names

A Limited Liability Company (LLC) is formed by filing the required forms and paying the required fees. The LLC name is the official name registered with the state. It provides liability protection for its owners. A trade name is the name the public uses to identify a business. It is used for marketing and advertising purposes, but does not provide liability protection on its own.

Moving an LLC to Another State

When moving an LLC to another state, the business becomes a foreign LLC in that state. As a foreign LLC, you must register with the new state to conduct business there.

Using a Trade Name

Can I use a trade name for my business?

You need a unique legal name submitted to the government to start a business. The trade name depends on location and whether the name conflicts with a trademark. An LLC provides liability protection and tax benefits for many businesses, making it advantageous despite the effort to create it.

Registering a Trade Name

In most states, the website of the state business filing agency includes an online entity name check tool. You can use the online tool to search business names and find out whether another business is already using the name you have chosen. The only way to be certain that you can have exclusive rights to a trade name is to register it as a trademark.

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