A trade name is the official name under which a company does business. It allows a business to identify itself during operations and customer interactions. Sometimes trade name registration is required to get a DBA certificate for easy customer identification and brand promotion.
Trade names provide notice you are using that name, but they do not prevent others from using the same name. Trademarks legally protect and distinguish products and services from competitors.
States register trade names for tax purposes and to track companies. However, registering a trade name does not provide exclusive use rights.
Registered Name vs Fictitious Name
A fictitious name is any assumed name, style, or designation other than the proper name of the entity using such name. A registered name refers to a business’s legal name registered with the state.
DBA (Doing Business As)
A DBA allows a business to operate under a name different than its legal name. An LLC provides legal protections to business owners. LLCs can register DBAs while still using their official LLC name.
DBAs operate like nicknames, allowing businesses to use a different name for certain purposes while retaining their legal name. States require DBA registration to track companies for taxes, but DBAs do not provide exclusive name use rights or legal protections.
You can file for a fictitious business name online in most states, including California. Every state has different processes and terminology for DBAs and legal registrations. Check your Secretary of State’s website for specifics.
A DBA offers marketing and flexibility benefits for small businesses and solopreneurs. It establishes a brand without formalizing a legal entity. However, LLCs provide more legal protections.
The difference between an assumed name and a legal name is that the legal name is registered with the government while an assumed name is used for business without being registered.