A company name is the actual name of the business. A trade name or DBA (Doing Business As) is a way of doing business under a name filed in a state or county. A trade name can be registered by any type of business such as LLCs, corporations, and nonprofits. A DBA is an alias and is not an actual business entity.
Choosing and Registering a Trade Name
Your creativity is your greatest asset in choosing a DBA that best represents your brand and is easily remembered. Once acquired, you can do business under the fictitious name. Rules vary by state and county. Some require fees and applications for each DBA registering.
A company can have a legal name and trade name at the same time, or both can be the same. If operating under a different name, it’s often advised to register the trade name to aid sales and marketing to attract more customers rather than using legal names.
Registering a DBA or trade name doesn’t offer the same rights or benefits as a registered trademark or state-level registration. Generally, one would register a DBA by filing a form with the Secretary of State where the business is located or registered.
DBA vs. LLC
What is the difference between an LLC and trade name?
An LLC (Limited Liability Company) represents an actual business entity offering certain legal protections to its owners. A trade name or DBA does not provide these protections and is merely an alias for the business.
Think of a DBA as your business’s nickname, and using it creates a public record of the business entity behind the company name. A trade name offers the advantage of being a more marketable or memorable identity for a company to attract customers.
DBA Application
A DBA application typically includes the following information:
- Fictitious name
- Business description
- Legal name
- Owner names and addresses
More information may be required depending on the state and business type, as well as additional requirements specific to filing a DBA name.