A trade name is defined as a pseudonym (fictitious name) utilized in reference to a company, small business, corporation, partnership, or LLC. When your company’s legal name is introduced to the public, the trade name is what will be visible. Not all businesses have trade names, but the majority of them do. The trade name is utilized for every operational process, such as marketing and advertising. Are trade names required by the federal government? It depends on how you look at it. Yes, a trade name is a legal requirement for business entities that operate under a name other than their legal name. Business entities operating under their legal name are not required to utilize a trade name.
Once your trade name is registered, it will become public. When consumers search for information about your company, the trade name is what they will see. Learn more about registering your trade name by reading the content provided in the article below.
Trade Name Vs Trademark
It is important to not confuse trade names with trademarks. While the two appear to be similar, they are slightly different. Both trade name and trademark play a major role in establishing and protecting a brand. Trademarks are utilized to protect specific goods and services while trade name protects a company’s legal name.
Common mistake business entities make is utilizing the same symbol, word, or phrase for their trade name and trademark. Experts recommend keeping the two separate to avoid potential lawsuits for business owners.
Know The Benefits Of A Registered Trade Name
The key to protecting your company’s legal name is จดทะเบียนการค้า. What you may not know is a registered trade name can also come in handy for partnerships and sole proprietors. Instead of exposing your personal name to the public, you can conceal it with a trade name. It is not unusual for sole proprietors, contractors, and designers to not want their personal name connected to their business. In many cases, the decision to go with a trade name, in this case, is privacy protection.
It is crucial that consumers understand the importance of a trade name for private, public, and professional service providers. It has nothing to do with fraud or any other unlawful business practice. It is all about protecting your personal name from potential public scrutiny and lawsuits.
Commercial Expansion Purposes
A trade name is a great way for Limited Liability Companies “LLCs” to expand into new markets. What exactly does this mean? When LLCs register their legal names, their options are limited to the availabilities within the state of operation. In other words, a business entity can choose a legal name as long as it is not already in use. States operate as individual government entities. So, a business entity can choose any legal name that another business entity operating in the state has not already taken.
When LLCs expand into other states, there is the likelihood of their legal name already being utilized by another business entity. In this case, the expansion will not be permitted because the legal name is already in use. To avoid public confusion and being pulled into a lawsuit that has nothing to do with your LLC, you must choose a trade name.
Once you registered a trade name, the state will approve your business expansion. It is crucial to keep this in mind when contemplating a new expansion.
Register Your Trade Name With Ease
Registering a trade name is a simple process that can take between 1 and 1-1/2 years to complete. Start with a desirable, relevant trade name, choosing a state agency that will rule over your business. Complete the required paperwork and submit it to the state agency. The rest of the process is the state agency’s responsibility.