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Instead of creating a new LLC for the new locations, Becky might get a trade name for it. For example, a local restaurant, “Becky’s Bistro,” might want to expand across their county, with a slightly different name for each location.

That said, many corporations and LLCs also choose to use trade names. Because of this scenario, trade names are most commonly used by unincorporated entities.

Lauren sells handmade baby clothes, so she decides to name her shop “Sew Sweet Creations.” Unless she incorporates as an LLC or corporation, she’d be using a trade name. Not many people want to call their business by their own name. So her business’s legal name is, well…Lauren Smith. From a legal standpoint, her business is indistinct from her own person. Here’s where it becomes important to note what kind of entity you’re running.įor example, let’s say Lauren Smith operates as a sole proprietorship. More specifically, it’s a fake name used by a business, much like you might use a nickname around family and friends.Ī bit more technically, a trade name differs from the business’s legal name. If this is something you want or need, don't fret, there are many good LLC services in OH that can help you take care of the paperwork.Ī trade name-often called a DBA or fictitious name-is a type of business name. Keep in mind that filing a trade name will not give your business protection through the corporate veil like an LLC will.