A company name is the actual name of the business, whereas a trade name, also known as a fictitious name or DBA (Doing Business As), is a name filed in a state or county that a business uses to identify itself to the public. Using a DBA allows for flexibility and versatility in operations, aiding in brand recognition and establishing customer trust.
Registering a DBA
To register a DBA, businesses must typically file paperwork with their local government, which may require fees and include an application form that contains the fictitious name, business description, legal name, owner names, and addresses. Each state and county has different rules, and additional requirements might need to be fulfilled, depending on the state and business type.
A company can have both a legal name and a trade name, giving the business the advantage of better marketing and customer attraction. Registering a DBA creates a public record that shows who is behind the company. However, it does not offer the same rights or benefits as a registered trademark or state-level registration.
What is a DBA Trade Name Example?
A DBA is an alias that is not an actual business entity itself, unlike the business name which is registered with the government.
A trade name, for example, "Super S Stores" for a grocery store chain, is how a business is recognized by the public and is often registered with the county where the business is located. A DBA provides clarity regarding the specific entities engaging with stakeholders and can prevent potential confusion when operating under multiple divisions within an organization or collaborating with subsidiary enterprises.
When establishing a DBA in any state, the company must declare its intent to do business under a different name by filing a registration form with the appropriate state agency. This process allows the business to operate with a different "username," distinguishing it from the company’s legal name and the names of its investors and owners.