trade name
Definition
A trade name is the name your business uses publicly to sell products or services, which may or may not be the same as your official legal name registered with the government. Many business owners choose a catchy or descriptive trade name that customers will recognize, even though the government has them registered under a different formal name. Registering a trade name (sometimes called a DBA, or 'doing business as') lets you legally operate and receive payments under that name.
Example
John Smith registers his legal business as 'Smith Enterprises LLC' but operates his bakery under the trade name 'Sweet Crumbs Bakery,' which is the name customers see on the sign and receipts.
Watch Out
Registering a trade name with your state does not automatically give you trademark protection, so someone else could potentially use the same name in another state unless you take extra steps to trademark it.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.