The short answer
A company name is the official, registered name of a legal entity such as a corporation or LLC. A business name is the name the business uses with customers, which may be the same, or may be a different trading name or brand. Terminology and rules vary by country and by state or region, so treat this as general information, not legal advice.
What is a company name?
A company name, often called the legal name or registered name, is the name under which a company is formed and recorded with the relevant authority. It is the name used on contracts, tax filings, bank accounts, and official records. Rules often require it to include a designator such as “Limited”, “Inc.”, or “LLC”, depending on the entity type and jurisdiction. The idea that the entity is separate from its owners is covered in the business entity concept.
What is a business name?
“Business name” is a looser term. It generally means the name a business operates under. For a sole proprietor, it might be the owner’s own name or a different one. For a company, it can be the legal name or a shorter, more marketable name. In some places, “business name” also has a specific legal meaning. For example, in Australia a registered business name is different from a company name, so the term depends on where you are.
Trade names, DBAs and assumed names
When a business operates under a name that differs from its legal name, it is often called a trade name. Terms vary by region:
- DBA (“doing business as”): common in the United States.
- Assumed name or fictitious name: used in some US states.
- Trading name: common in the UK and other countries.
Many places require such names to be registered or disclosed, and the rules differ widely. A registered trade name usually does not create a separate legal entity, and it does not by itself guarantee exclusive rights to the name. Trademarks are a separate matter.
Differences at a glance
| Company name | Business name | |
|---|---|---|
| Nature | Legal name of an entity | Name used to trade or market |
| Used for | Contracts, tax, official filings | Customers, advertising, signage, website |
| Registration | Required when forming the entity | May be required if different from the legal name, depending on location |
| Must be unique | Usually must be distinguishable on the register | Rules vary |
| Can differ from the other | Yes | Yes |
Should they match?
They do not have to, but there are good reasons to keep them close. Matching names are easier for customers to find, and avoid confusion on invoices and websites. Many people name their LLC the same as their brand for simplicity. A different trading name can make sense if you run several brands under one company or want a name that is easier to market than the formal one. Using a different name may create extra registration or disclosure steps, depending on where you are.
Which comes first, the entity or the trade name?
Usually the entity comes first, because the trade name is often registered on behalf of an existing entity. A sole proprietor, on the other hand, has no separate entity, so any trade name is registered under the owner. If you plan to form an LLC or company later, it is worth checking whether the name will be available for both purposes. Requirements differ, so check with your local registry or a professional.
Things to check before choosing a name
- Whether the name is already in use on the business register.
- Whether similar names exist that could cause confusion or a trademark dispute.
- Whether a matching domain name and social handles are available. (see internet marketing terms for what a handle is)
- Whether the name is easy to spell, say, and remember.
- Whether the name is too narrow if you might expand into other products.
- Whether it avoids restricted or misleading words that your jurisdiction may regulate.
- Whether the name suits how you hope the business will grow (see lifestyle business vs growth business).
Frequently asked questions
Should I name my LLC the same as my business name? It is not required, and many owners do, because it keeps things simple. Using a different name usually means registering it as a trade name where required.
What is the difference between a company name and a business name? The company name is the legal, registered name of an entity. The business name is the name used publicly, which may be the same or different.
Which comes first, a DBA or an LLC? Typically you form the LLC first, then register a DBA for it if you want to operate under a different name. Check your local rules.
What should I avoid when naming an LLC? Names already taken, names too close to others, misleading terms, and words your state or country restricts. Your registry will list its requirements.