Naming Your Business

What is a "trade name"?

When naming your business, a "trade name" is just a name that's used in trade, which may not be your legal name. For example, you may have it in your legal name and most of these are registered trademarks as well, therefore they're actually in the business doing that. For example, General Electric may be the corporation, or it may not. It may be another corporation name, but General Electric is a name that's a trademark which they'll use as a name in trade. These names are important because it helps with branding, which we'll talk about later, because it represents the kind of thing that they do.

What is a "fictitious business name"?

A fictitious business name doesn't mean you just dream something up. You can't use it for fraudulent purposes. For example, you can't call yourself a university if you're not a university. But it is a name other than your own name that you use. For example, the first fictitious name registration I ever got was called Global Associates, because I was dealing internationally for import/export and consulting, and Global Associates was my fictitious name. You can get registration. There are different rules in different states. You really have to check: sometimes it's local, sometimes it's a state license. In any case, they'll tell you how to do it when you go down for your business license.

Why would I need a fictitious business name?

You may not need a fictitious business name. In other words, you may just use your name and that may be fine. There's nothing wrong with using your own name. However, a fictitious business name may allow you to operate different businesses in specialized areas. It may give a little more credibility over your name. That name is a generic thing versus global associates and consultings, or global associates and publishers, which has a certain connotation to it.