A trade name, trading name, or business name, is a
pseudonym
A pseudonym (; ) or alias () is a fictitious name that a person or group assumes for a particular purpose, which differs from their original or true name (orthonym). This also differs from a new name that entirely or legally replaces an individua ...
used by companies that do not operate under their registered company name. The term for this type of alternative name is a "fictitious" business name. Registering the fictitious name with a relevant government body is often required.
In a number of countries, the phrase "trading as" (abbreviated to t/a) is used to designate a trade name. In the United States, the phrase "doing business as" (abbreviated to DBA, dba, d.b.a., or d/b/a) is used,
among others, such as assumed business name or fictitious business name. In Canada, "operating as" (abbreviated to o/a) and "trading as" are used, although "doing business as" is also sometimes used.
A company typically uses a trade name to conduct business using a simpler name rather than using their formal and often lengthier name. Trade names are also used when a preferred name cannot be registered, often because it may already be registered or is too similar to a name that is already registered.
Legal aspects
Using one (or more) fictitious business name(s) does not create one (or more) separate legal entities.
Pinkerton's, Inc. v. Superior Court
'', 49 Cal. App. 4th 1342, 1348-49, 57 Cal. Rptr. 2d 356, 360 (1996) (collecting cases and explaining term of art "doing business as" (DBA)). The distinction between a registered legal name and a fictitious business name, or trade name, is important because fictitious business names do not always identify the entity that is
legally responsible.
Legal agreements (such as
contract
A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to ...
s) are normally made using the registered legal name of the business. If a corporation fails to consistently adhere to such important legal formalities like using its registered legal name in contracts, it may be subject to
piercing of the corporate veil.
In English, trade names are generally treated as
proper noun
A proper noun is a noun that identifies a single entity and is used to refer to that entity (''Africa'', '' Jupiter'', ''Sarah'', '' Microsoft)'' as distinguished from a common noun, which is a noun that refers to a class of entities (''contine ...
s.
By country
Argentina
In
Argentina
Argentina (), officially the Argentine Republic ( es, link=no, República Argentina), is a country in the southern half of South America. Argentina covers an area of , making it the second-largest country in South America after Brazil, t ...
, a trade name is known as a ''nombre de fantasía'' ('fantasy' or 'fiction' name), and the legal name of business is called a ''razón social'' (social name).
Brazil
In
Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
, a trade name is known as a ''nome fantasia'' ('fantasy' or 'fiction' name), and the legal name of business is called ''razão social'' (social name).
Canada
In some Canadian
jurisdiction
Jurisdiction (from Latin 'law' + 'declaration') is the legal term for the legal authority granted to a legal entity to enact justice. In federations like the United States, areas of jurisdiction apply to local, state, and federal levels.
Ju ...
s, such as
Ontario
Ontario ( ; ) is one of the thirteen provinces and territories of Canada.Ontario is located in the geographic eastern half of Canada, but it has historically and politically been considered to be part of Central Canada. Located in Central C ...
, when a businessperson writes a trade name on a contract, invoice, or cheque, he or she must also add the legal name of the business.
Numbered companies will very often operate as something other than their legal name, which is unrecognizable to the public.
Chile
In
Chile
Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the eas ...
, a trade name is known as a ''nombre de fantasía'' ('fantasy' or 'fiction' name), and the legal name of business is called a ''razón social'' (social name).
Ireland
In
Ireland
Ireland ( ; ga, Éire ; Ulster Scots dialect, Ulster-Scots: ) is an island in the Atlantic Ocean, North Atlantic Ocean, in Northwestern Europe, north-western Europe. It is separated from Great Britain to its east by the North Channel (Grea ...
businesses are legally required to register business names where these differ from the surname(s) of the sole trader or partners, or the legal name of a company. The
Companies Registration Office publishes a searchable register of such business names.
Japan
In
Japan, the word is used.
Nigeria
In
Colonial Nigeria, certain tribes had members that used a variety of trading names to conduct business with the Europeans. Two famous examples were King
Perekule VII of
Bonny, who was known as ''Captain Pepple'' in trade matters, and King
Jubo Jubogha
King Jaja of Opobo (full name: Jubo Jubogha; 1821–1891) was the first king (amanyanabo) of Opobo. He was also the founder of Opobo city-state in present day Rivers State of Nigeria. Born in Umuduruoha Amaigbo in present-day Imo State, his act ...
of
Opobo, who bore the pseudonym ''Captain Jaja''. Both Pepple and Jaja would bequeath their trade names to their royal descendants as official
surnames upon their deaths.
Singapore
In
Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
, there is no filing requirement for a "trading as" name, but there are requirements for disclosure of the underlying business or company's registered name and unique entity number.
United Kingdom
In the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
, there is no filing requirement for a "trading as" name, but there are requirements for disclosure of the owner's true name and some restrictions on the use of certain names.
United States
A minority of U.S. states, including
Washington, still use the term trade name to refer to "doing business as" (DBA) names; In most U.S. states now, DBAs are officially referred to using other terms; almost half of states, like
New York
New York most commonly refers to:
* New York City, the most populous city in the United States, located in the state of New York
* New York (state), a state in the northeastern United States
New York may also refer to:
Film and television
* '' ...
and
Oregon
Oregon () is a state in the Pacific Northwest region of the Western United States. The Columbia River delineates much of Oregon's northern boundary with Washington, while the Snake River delineates much of its eastern boundary with Idah ...
, use the term ''Assumed Business Name or Assumed Name;'' nearly as many, like
Pennsylvania
Pennsylvania (; (Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, Ma ...
, use the term ''Fictitious Name.''
For
consumer protection purposes, many U.S. jurisdictions require businesses operating with fictitious names to file a DBA statement, though names including the first and last name of the owner may be accepted. This also reduces the possibility of two local businesses operating under the same name, although some jurisdictions do not provide exclusivity for a name, or may allow more than one party to register the same name. Note, though, that this is not a substitute for filing a
trademark
A trademark (also written trade mark or trade-mark) is a type of intellectual property consisting of a recognizable sign, design, or expression that identifies products or services from a particular source and distinguishes them from oth ...
application. A DBA filing carries no legal weight in establishing trademark rights. In the U.S., trademark rights are acquired by use in commerce, but there can be substantial benefits to filing a trademark application.
Sole proprietors are the most common users of DBAs. Sole proprietors are individual business owners who run their businesses themselves. Since most people in these circumstances use a business name other than their own name, it is often necessary for them to get DBAs.
Generally, a DBA must be registered with a local or state government, or both, depending on the jurisdiction. For example, California, Texas and Virginia require a DBA to be registered with each county (or
independent city
An independent city or independent town is a city or town that does not form part of another general-purpose local government entity (such as a province).
Historical precursors
In the Holy Roman Empire, and to a degree in its successor states ...
in the case of Virginia) where the owner does business. Maryland and Colorado have DBAs registered with a state agency. Virginia also requires corporations and LLCs to file a copy of their registration with the county or city to be registered with the State Corporation Commission.
DBA statements are often used in conjunction with a
franchise. The franchisee will have a legal name under which it may sue and be sued, but will conduct business under the franchiser's
brand name
A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create a ...
(which the public would recognize). A typical real-world example can be found in a well-known pricing
mistake
Mistake(s) may refer to:
* An error
Law
* Mistake (contract law), an erroneous belief, at contracting, that certain facts are true
** Mistake in English contract law, a specific type of mistake, pertaining to England
* Mistake (criminal law), ...
case, ''Donovan v. RRL Corp.''
26 Cal. 4th 261(2001), where the named defendant, RRL Corporation, was a
Lexus
is the luxury vehicle division of the Japanese automaker Toyota. The Lexus brand is marketed in more than 90 countries and territories worldwide and is Japan's largest-selling make of premium cars. It has ranked among the 10 largest Japanese ...
car dealership
A car dealership, or car dealer, is a business that sells new or used cars, at the retail level, based on a dealership contract with an automaker or its sales subsidiary. Car dealerships also often sell spare parts and automotive maint ...
doing business as "Lexus of
Westminster
Westminster is an area of Central London, part of the wider City of Westminster.
The area, which extends from the River Thames to Oxford Street, has many visitor attractions and historic landmarks, including the Palace of Westminster, Buck ...
", but remaining a separate legal entity from Lexus, a division of
Toyota Motor Sales, U.S.A., Inc.
In
California
California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the ...
, filing a DBA statement also requires that a notice of the fictitious name be published in local
newspaper
A newspaper is a periodical publication containing written information about current events and is often typed in black ink with a white or gray background.
Newspapers can cover a wide variety of fields such as politics, business, sport ...
s for some set period of time to inform the public of the owner's intent to operate under an
assumed name. The intention of the law is to protect the public from fraud, by compelling the business owner to first file or register his fictitious business name with the county clerk, and then making a further public record of it by publishing it in a newspaper. Several other states, such as
Illinois
Illinois ( ) is a state in the Midwestern United States. Its largest metropolitan areas include the Chicago metropolitan area, and the Metro East section, of Greater St. Louis. Other smaller metropolitan areas include, Peoria and Roc ...
, require print notices as well.
Uruguay
In
Uruguay
Uruguay (; ), officially the Oriental Republic of Uruguay ( es, República Oriental del Uruguay), is a country in South America. It shares borders with Argentina to its west and southwest and Brazil to its north and northeast; while bordering ...
, a trade name is known as a ''nombre fantasía'', and the legal name of business is called a ''razón social''.
See also
*
Pen name
A pen name, also called a ''nom de plume'' or a literary double, is a pseudonym (or, in some cases, a variant form of a real name) adopted by an author and printed on the title page or by-line of their works in place of their real name.
A pen na ...
*
Rebranding
Rebranding is a marketing strategy in which a new name, term, symbol, design, concept or combination thereof is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, invest ...
*
Service mark
A service mark or servicemark is a trademark used in the United States and several other countries to identify a service rather than a product.
When a service mark is federally registered, the standard registration symbol ® or "Reg U.S. ...
*
Trade dress
Trade dress is the characteristics of the visual appearance of a product or its packaging (or even the design of a building) that signify the source of the product to consumers. Trade dress is an aspect of trademark law, which is a form of intell ...
References
{{reflist
Brand management
Business law
Product management
Names
Intangible assets