Business Name vs. Company Name
The key difference between a company name and a business name is that a company name refers to a separate legal entity, while a business name refers to the title under which a venture operates. You must register a business name to carry on a business under that name. However, a company name is only needed if you choose to register the venture as a company.
- A business name is the title under which a venture operates
- A company name refers to a separate legal entity
Benefits of Registering a Company and Business Name
Registering a company has benefits like lower tax rates. Business names refer to sole proprietors or partnerships, while company names indicate a legal structure.
Legalities and Processes
A company name gives legal status, allowing a company to own property. It can employ staff, sue or be sued, and take on debt. A business name is for marketing and branding.
Formal processes are required to change a company name to reflect government record changes. A trading name is used for business by a company, different from its registered name.
Naming Regulations
Identical or nearly identical names cannot be registered. However, similar business names can be registered. Only corporations can use “company” in a business name. Anyone can use any business name, and no one database ensures uniqueness of names.