Basic US Business Registration: Trade Name/DBA Name

Need a simple, inexpensive business registration that will let you assign a name to your business? A trade name/DBA name can let you do just that. Any business structure (e.g. sole proprietor, LLC, S-Corp, etc) an register a trade name, and this registration will not change the business structure. This is a great option for those sole proprietors who wish to maintain their sole proprietorship status.

A trade name certificate will fulfill NihaoPay’s requirement for a business registration. It may also be necessary for opening a business bank account should you decide to do that.

What Is a Trade Name/DBA Name?

According to LegalZoom, “A trade name is the name your business is commonly known as or the name you use when advertising or doing business. A trade name is also called a DBA (doing business as) name.”

In a sole proprietorship, your business’s legal name is your full legal name. (This is important to keep in mind when completing any business related paperwork.) This is because there is no legal distinction between you as an individual and you as a business. Registering a trade name allows you to use a different name in place of your own personal name in a sole proprietorship.

Registering a Trade Name

Unfortunately, this part isn’t quite as straightforward as registering for an EIN. That’s because the process for registering a trade name varies by state. Because of that, the cost and expiration period (if needed) varies too. Even the SBA (Small Business Administration) states, “Registering your DBA is done either with your county clerk’s office or with your state government, depending on where your business is located.”

You may be prompted to check the local database for trade names to avoid duplicates. Therefore, it may be a good idea to register a trade name before registering an EIN if you plan to do both.

To find out more information about registering a trade name in your specific location, you can contact your local SBA office. They can either answer questions about trade name registration in your area, or they will refer you on to somewhere that can.

My Personal Experience With Trade Name Registration

My local SBA office in Oklahoma referred me to my local Women’s Business Center. They told me I only needed to register my domestic trade name with the OK Secretary of State. I had to complete a simple online form on my Secretary of State’s website. There was a waiting period of just a few business days for the office to approve my trade name. The registration had a one-time fee of $25, and it has no expiration date.

It feels more official when I mention the name of my business to others. However, I’m not sure many of my Chinese parents know or care about my trade name.

Conclusion

Registering a trade name should be pretty straightforward and have minimal fees. It will also fulfill NihaoPay’s business registration requirement. However, the registration process varies by state. Therefore, you will need to do more research to find out the full details of how to register for one in your area. The good news is that doing the research is possibly more difficult and time consuming than the actual registration itself!

Disclaimer – Any information contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues.  In addition, this article is not a substitute for a formal opinion; it is for informational purposes only. For more detailed information, readers may contact their local SBA office.