What Is A Trade Name For A Business?

You have most likely heard the expression “trade name” and you are presumably thinking about what a “fictitious name” is and why you need one for your business. The terms trademark and trade name sound quite the same, yet it is significant for entrepreneurs, particularly the individuals who are in the underlying startup stage, to know the distinction between the two. Choosing and enlisting trademarks and trade names is a significant piece of building up a brand presence and gaining acknowledgement in the commercial sector for an organization and its items. Therefore, it is a cycle that ought to be considered cautiously.

So, what is a trade name for a business? The law makes an unequivocal differentiation between the two; a trade name alludes to the organization’s authentic name, while a trademark gives an organization’s image legitimate assurance. While they may not be the equivalent, organizations ought to abstain from picking trade names that are excessively similar to an enrolled trademark, as this could open proprietors to an expected claim.

One of the main things you do as an entrepreneur is pick a business name. Your business can work under your legitimate business name. Or on the other hand, you can run your organization under a business trade name. Anyway, how can one distinguish between the two? Carry on reading in order to become familiar with a business name versus a trade name and how they contrast with each other.

What Is A Trade Name?

A trade name is a name a business uses to recognize itself to the general population. Different terms utilized other than ‘trade name’ are ‘fictitious name’ and “DBA” or “D/B/A” (also known as ‘doing business as’). A trade name is typically enrolled with the state where the business is situated, as a fictitious name or d/b/a (doing business as) name.

So what is an example of a trade name? If an organization is sorted out as a LLC with the name “Air Enterprises LLC” and the organization runs a chain of supermarkets called “Grand C Markets” then the trade name of the stores would be “Grand C Markets”. A DBA is equivalent to a trade name or a fictitious name. Individuals in your locale need to realize who is maintaining the local organizations. The Small Business Administration (SBA) site gives links to the particular trade name registration requirements in each state.

There are various tools online that can help you generate your own trade name. Moreover, you can even find a list of trade names that are either taken or are currently available.

What Is A Business Name?

A business name is the legal name your business goes by. It is the official name of the individual or entity that possesses the corporation. Furthermore, it is the name you use on your legal and government forms and business desk work.

A legal business name can change, contingent upon its sort of business structure. In the event that you work as a sole ownership, your legal business name is your complete name (e.g., Scott Knight). You can incorporate different words alongside your complete name (e.g., Scott Knight Insurance Corporation). Be that as it may, you should incorporate your full personal name if you have a sole ownership.

On the off chance that you are a proprietor of a general association, the business name is normally a mix of the last names of the organization’s proprietors and must be remembered for the association understanding.

Limited Liability Companies (LLCs) and other companies must build up their legal names while enrolling the business. Distinct from other business structures, the business legal name for LLCs and partnerships does not need to incorporate any of the proprietors’ names to be the business name. Be that as it may, a few states require LLCs and enterprises to incorporate “LLC” or “Partnership” in their lawful name (e.g., Rockwell Technology LLC).

What Is The Difference Between A Trade Name And A Business Name?

The business name is the legitimate name of the corporation. In the event that you own a sole ownership, the business name is your complete name. Proprietors frequently register a trade name under which to work their business. For instance, Earnest William claims a private company with a trademark (or DBA – “doing business as”) William’s Accounting Services.

The main difference between a trade name and a business name is that the business name appears on legal documents and government forms while the trade name appears on advertisements and signs.

Using Business Name vs. Trade Name

Normally, a business will have both a legitimate business name along with a trade name. The business name, as referenced, shows up on authoritative archives and government structures. Then again, a trade name by and large shows up on notices and signs.

It is the business’s choice to decide if it can profit by utilizing a trade name instead of their legitimate business name. Utilizing a DBA or a trade name has its favorable circumstances and drawbacks. Before you choose to make use of a trade name rather than your lawful name for business, consider the accompanying pros and cons of utilizing a trade name.

Pros of utilizing a trade name:

  • It is pretty inexpensive to register for a trade name
  • It helps giving your business more credibility
  • Its helps to distinguish between brands if you have a wide range of products
  • It allows you to further clarify the purpose of your business

Cons of a trade name:

  • There are no exclusive rights to the name until a trademark is registered
  • There are various potential extensive application procedures
  • It is usually only credible in the jurisdiction you filed it in, so you might have to file for another if you want to run your business somewhere else

Choosing A Name For Your Business

Choosing what to call your business is not as simple as it might sound. The name of your organization educates purchasers a great deal regarding your business. Thus, you need a name that is novel, significant, and eye catching. In order to choose the perfect name for your business, you should:

  • Think of ways you can apply the message of your business to its name
  • Choose something easy to remember and pronounce
  • Stay away from lengthy words that are difficult to spell
  • Make sure that the name is not already taken (do this by checking domain names, looking online, running a trademark search, etc.)
  • Get feedback from your family, friends and team

Choosing a business name to work under is a major advancement. It takes some experimentation, patience, and time to pick the correct name. Rundown out the business names you like and get your work done on whether they are available for use. In the event that the name is taken, return to the planning phase. After you choose what to name your business and check its accessibility, register the name with your state.

How To File A Trade Name?

At the point when you have set up your business association structure, and you have verified that you are working under an alternate name from your business legal name, the next thing you should do is file an invented name/DBA. Go to the County Recorder of the area where your business is found and request the DBA or “fictitious name” documenting form.

Various districts have different names for this form, so be relentless if the agent gives you an unusual look. You may also need to pay a little fee. On the off chance that you have enrolled your business with your state, you ordinarily do not have to enlist your trade name with your province, in light of the fact that your state has a record of your business and who claims it.

Regardless of whether you register your trade name with your state, you may still need to enlist for licenses and permits for your specific sort of business. For instance, in the event that you sell food, you will have to get a permit from the health department.


A trade name is a pen name used by organizations that do not work under their enlisted organization name. The expression for this kind of elective name is as mentioned in the article as well, ‘fictitious’ business name. Enlisting the fictitious name with an applicable government body is frequently required.

An organization normally makes use of a trade name to lead business with a less complex name instead of utilizing their formal and typically lengthier name. Trade names are likewise utilized when a favored name can’t be enlisted, regularly on the grounds that it might as of now already be registered or is excessively similar to a name that has already been enrolled.