Trade Names vs Trademarks
A trade name is the official name under which a company does business. It does not provide brand name protection or unlimited rights for use. Trade names register under state provisions based on the business form. Trademarks register under the Trademark Act with different approval processes and secure brand names legally.
Trade names provide notice you are using that name but do not prevent others from using the same name. While trade names allow a business to identify itself during operations and customer interactions, registering a trade name does not provide exclusive use rights.
Fictitious Names
To use a fictitious name formally, file paperwork and pay fees to register it. Requirements vary by state and county. A fictitious name identifies a business as operating under a different public name than its owner’s real identity.
Financial and Business Considerations
With a registered fictitious name, you can manage banking, payments, and taxes more easily, such as getting a tax ID. When starting a company, consider whether a fictitious name filing makes sense and consult a lawyer if unsure.
Legal Aspects and Privacy
Providing false names or addresses alone doesn’t constitute fraud, but using them to enable criminal plans violates federal law. Posting real names or details publicly risks identity theft or hacking, so consider privacy when sharing online.
The purpose of a fictitious name is to inform the public of a business’s real ownership. Depending on the location, find fictitious firm certificates at county clerks or Secretary of State offices.
Registered Names vs Fictitious Names
A fictitious name is any assumed name, style, or designation other than the proper name of the entity using such name. While a registered name refers to a business’s legal name registered with the state. DBAs operate like nicknames, allowing businesses to use a different name for certain purposes. However, LLCs provide more legal protections. Check your Secretary of State’s website for specifics on how to file for a fictitious business name.
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.