You’re likely familiar with the Fair Labor and Standards Act’s (FLSA’s) rules on overtime pay. But when you have employees who work varying schedules, you might be able to calculate overtime using the fluctuating workweek method. Continue reading “Calculating Overtime When Your Employee Works a Fluctuating Workweek”
One of the first things you do as a business owner is choose a business name. Your business can operate under your legal business name. Or, you can operate your company under a trade name. So, what’s the difference? Read on to learn more about business name vs. trade name and how they contrast.
What you call your business can make or break your company’s success. Sure, there are a lot of things that play a role in how successful your business is. But, your business’s name is definitely a key component.
Your business name is one of the first things potential customers notice about your company. It connects your customers to your products or services. With a good business or trade name, your business is one step closer to being successful.
When it comes to what you call your company, you need to know whether it’s more beneficial to use your business name or trade name. Find out the difference between business name and trade name below.
A business name is your business’s legal name. It is the official name of the person or entity that owns a company. And, it’s the name you use on your government forms and business paperwork.
A business’s legal name can vary depending on its type of business structure. If you operate as a sole proprietorship, your business legal name is your full name (e.g., Jason Williams). You can include other words along with your full name (e.g., Jason Williams Insurance Corporation). However, you must include your full personal name if you have a sole proprietorship.
If you are an owner of a general partnership, the business name is typically a combination of the last names of the partnership’s owners and must be included in the partnership agreement.
Limited liability companies (LLCs) and corporations must establish their legal names when registering the business. Unlike other business structures, the business legal name for LLCs and corporations does not have to include any of the owners’ names to be the business name. However, some states require LLCs and corporations to include “LLC” or “Corporation” in their legal name (e.g., Rockwell Technology LLC).
If a business owner wants to operate under a different name other than the company’s legal name, they can use a trade name instead.
A trade name does not need to include additional words or legal phrases (e.g., Corp, LLC, etc.). For example, a company’s trade name is Mike’s, but their legal business name is Mike’s Corporation. A business can opt to have their business name and trade name be the same.
A trade name may also be called a doing business as (DBA) name. It’s the name the public sees. Think of it as your business’s nickname. Businesses may use their trade or DBA name for marketing and sales purposes instead of their legal business name to help draw in more customers.
If you want to operate under a different name than your legal business name, register a trade name for your company. Every state and county has different rules for registering a DBA. Some require a separate fee and application for each DBA you register. Check with your jurisdiction for more information about registering a trade name.
Typically, a business will have both a legal business name as well as a trade name. The legal one, as mentioned, appears on legal documents and government forms. On the other hand, a trade name generally appears on advertisements and signs.
It’s up to the business to determine whether or not it can benefit from using a trade name in place of their legal business name. Using a DBA or trade name has its advantages and disadvantages. Before you decide to use a trade name instead of your legal name for business, consider the following pros and cons of using a trade name.
Pros of utilizing a trade name:
Cons of a trade name:
Deciding what to call your business is not as easy as it may sound. The name of your company tells consumers a lot about your business. So, you need a name that is unique, memorable, and attention-grabbing.
To choose the perfect name for your business, you should:
Selecting a business name to operate under is a big step. It takes some trial and error, patience, and time to choose the right name. List out the business names you like and do your homework on whether they are available to use. If the name is already taken, go back to the drawing board.
After you decide what to name your business and check its availability, register the name with your state.
As your business evolves, you may find yourself wanting (or needing) to change the DBA name of your company. Maybe you are planning on adding a new line of products. Or, maybe a partner joined your company. Whatever the case may be, sometimes you need to shake things up with your business name to have it align with the changes you are making to your company.
Switching your business name requires a little legwork on your end. And, the process may vary depending on your business structure.
Generally, you must follow the steps below to change your business name:
*You must file a new DBA registration if you operate as a sole proprietorship
Regardless of what name you operate under, you need to keep track of transactions. Patriot’s online accounting software is easy-to-use and offers free, USA-based support. Try it for free today!
This article is updated from its original publication date of March 21, 2017.
This is not intended as legal advice; for more information, please click here.
Let’s face it: everybody makes mistakes. So, if you make a mistake on an employee’s Form W-2, don’t panic. Instead, learn how to correct a W-2 form and take action. Continue reading “How to Correct a W-2 Form If You Make a Mistake”
A budget can act as a little roadmap to guide your business through the year. It can help you avoid overspending, make educated financial decisions, and stay organized. But if you aren’t careful, you could wind up making budget mistakes that negate all of these benefits. Continue reading “5 Common Business Budget Mistakes That Can Throw Your Whole Year Out of Whack”
Changing insurance plans can seem like a major hassle for your entire company, especially your employees. But, it doesn’t have to be. Maybe you want to switch plans because your current one is too costly. Or, maybe you have no choice but to switch. Whatever the case may be, changing health insurance plans can be painless if you take the right steps.
Continue reading “5 Steps for Changing Insurance Plans at Your Small Business”
A sole proprietorship is the most common type of business structure. A whopping 73% of businesses in the U.S. are sole proprietorships. If you’re considering starting your own venture and forming a sole proprietorship, weigh the pros and cons of a sole proprietorship before making a decision.
Continue reading “What Are the Pros and Cons of a Sole Proprietorship?”
As an employer, you’re responsible for withholding certain taxes from employees’ wages. One of the taxes you may need to withhold is local income tax. Read on to get the scoop on this tax, and learn how to calculate local income tax.
Continue reading “How to Calculate Local Income Tax in 6 Simple Steps”
Do you have questions about your tax situation that nobody can seem to answer? If so, you may need a private letter ruling from the IRS. What exactly is it, and how do you get it? Continue reading “What Is a Private Letter Ruling from the IRS?”
Do your employees live in a different city than the one they work in? Does that city have local income tax? If so, you might consider implementing courtesy withholding to simplify your employee’s tax responsibilities. Continue reading “What Exactly Is Courtesy Withholding?”
If your business is private, at some point or another you may consider going public. When you go public, you go through an IPO process. So, what is an IPO? Read on to learn the ins and outs of an IPO, what the process entails, and the pros and cons of going public.
Continue reading “What Is an IPO? The Process of Going Public”
