A trade name is a formal declaration that an individual, company or organization is conducting business under a different name. Trade names are most commonly referred to as a DBA’s (or doing business as) but are also known as fictitious business names and trade names. A trade name is a secondary name for your business, an officially licensed “alias” if you will. Business Owner(s) should not conduct business under a fictitious business name until they have filed a DBA statement. Also, most banks won’t allow them to open an account until they have seen proof that the DBA has been filed. The benefits for business owner(s) of registering a DBA include…
- Open bank accounts under that business name.
- Write and cash check under name.
- Discourage competitors from using your business name.