A company typically uses a trade name to conduct business using a simpler name rather than using their formal and often lengthier name. Trade names are also used when a preferred name cannot be registered, often because it may already be registered or is too similar to a name that is already registered. If you want to use a name other than your legal business name, you will need to register it as a trade name/DBA (Doing Business As).
Some examples of businesses that need to register a trade name/ MBL/DBA include: You are a sole proprietor but are adding something to your legal name that modifies it (for example, Jane Doe Consulting). You plan to use a name other than your legal name for marketing purposes (for example, your business’ legal name is Smith Bakeries Inc., but you are marketing as Bob Smith’s Bakery).
Number corporation register trade name for doing business; often operate as something other than their legal name, which is unrecognizable or difficult to remember by public.
Attributes of Trade Name
- Can own by Corporation, Individual
- Easiest form to start business
- No Business name protection
- Tax facility based on owners