Trade Names vs Trademarks
A trade name is the official name under which a company does business. A trademark legally protects and distinguishes products and services from competitors. Understand differences between names. Then choose carefully.
- Trade names register under state provisions based on the business form.
- Trademarks register under the Trademark Act with different approval processes.
Legal Protection and Usage
While trade names provide notice you are using that name, they do not prevent others using the same name. Trademarks secure brand names legally.
- States register trade names for tax purposes and to track companies. But legal protection varies.
- Registering a trade name does not provide exclusive use rights.
A trade name 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.