Trade Names and Legal Business Names
A trade name, also known as a "doing business as" (DBA) name, is the name under which a company conducts its business. It’s different from the legal name of the company, which is registered with the government.
The term “trade name” refers to the official name under which a firm or an individual (sole proprietor) decides to run its business. Typically, this can be derived by dropping just “LLC” or “Inc.” from the business’s name.
Purpose and Importance of Trade Names
The purpose of a trade name is for state officials to know what companies are operating within the state’s borders. If you want to use a name other than your legal business name, you will need to register it as a trade name.
In essence, the meaning of a trading name is a name under which a business operates. It is the name that customers, suppliers, and the general public associate with a particular business entity.
Example of Trade Names
A company’s trade name is Mike’s, legal name is Mike’s Corporation. A business can have the same business and trade name. It might be called a doing business as (DBA) name seen by the public. Is brand name and trade name the same? A brand name is given to a product or service, while a trade name is used in business, not the full legal name. It is the official name under which an individual or company chooses to do business.