A business name is what people call the company. A trade name is what people will see on the products that they buy.
Trade names are also known as fictitious business names or “doing business as” (DBA) terms. They allow businesses to use an alternate name in addition to their legal company name. For example, your legal company could be called Joe’s Plumbing and Repair but your trade name might be ABC Plumbing Company. This article will cover the benefits of using a trade name.
What your business is called can make it successful or not. For example, there are many things that can make a company successful. But, the name of your company is one of the most important parts.
There are multiple factors to being successful, but the company name is one of them. A trade name, also known as a “doing business as” or DBA term can make your marketing and branding more effective by having it have its own identity in conjunction with the legal company’s name.
Your name is important for customers to know what your business does. Your name connects you to your products or services. With a good business or trade name, it will be easier for you to succeed.
Using Business Legal name vs. Trade name
The decision between the legal company name and a trade name is important. It should depend on what you want to do with your business. Imagine that you are creating an event or conference for teaching people about financial literacy, but it’s not something you intend to continue after one time.
This might be a good time to use a trade name since you won’t need to go back and revise your company name in order to change it. With a trade name, you can also use the same domain as your legal company name if desired at no extra cost.
Pros of using a trade name:
- You can promote your business more easily with a trade name.
- A trade name can help you build trust with potential customers.
- Trade names are less expensive and easier to register than unique company names.
Cons of using a trade name for your business:
- No exclusive rights to the name unless you register for a trademark. If you want your name to be unique, it can take a lot of work and may cost a lot of money.
- Typically, this is only valid in the place you filed in. You have to file for another place if you want to operate there.