What is the Difference Between Business Name and Company Name?
🆚 Go to Comparative Table 🆚The difference between a business name and a company name lies in their legal implications and the way they are used. Here are the key distinctions:
- Business Name: A business name is the title under which a venture operates and is commonly used for sales, advertising, and other public activities. It is not a separate legal entity from the owner and does not provide liability protection.
- Company Name: A company name is the legal registration of a company, such as a corporation or a limited liability company (LLC). It is a separate legal entity from its owners and provides liability protection. A company name has specific legal requirements, such as including "Inc." or "LLC" at the end of the name, depending on the type of company.
In some cases, a business owner may choose to register a trade name or DBA (doing business as) to operate under a different name in a state or county. This trade name is not an actual business entity and does not provide liability protection.
In summary, a business name is used for advertising and public activities, while a company name has legal implications and provides liability protection for its owners. A trade name or DBA is a way of operating under a different name but does not offer legal protection.
Comparative Table: Business Name vs Company Name
Here is a table that highlights the differences between a business name and a company name:
| Feature | Business Name | Company Name |
|---|---|---|
| Definition | A business name is the title under which a venture operates. | A company name is the actual name of the business, which is a legal entity on its own. |
| Purpose | A business name is used for sales, advertising, and marketing purposes. | A company name is used for legal purposes, such as owning property, employing others, incurring debt, and being liable for legal action. |
| Legal Requirements | Unless an exception applies, you must have a business name. | If you choose to register as a company, you need a company name. |
| Registration | Business names can be registered by various types of businesses, such as LLCs, corporations, and nonprofits. | Corporations use various trade names to distinguish their brands if they have many products. |
In summary, a business name is the title under which a venture operates and is used for sales, advertising, and marketing purposes. On the other hand, a company name is the actual name of the business, which is a legal entity on its own and is used for legal purposes.
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