Embarking on the journey of changing your business name can be an exciting step towards new horizons. It’s a process that many businesses undergo for a variety of reasons. A common motivation for a company name change is the desire to rebrand the business to reflect a new direction, mission, or range of offerings. Similarly, when a business changes hands, the new owners may want a fresh name to signal a change in management or a new vision for the company.
Understanding the distinction between a legal entity name and a “Doing Business As” (DBA), or “trade name,” is critical in this process. The legal entity name is the official name of the business as registered with the state and other government agencies. It’s the name under which you file your taxes and conduct legal activities. On the other hand, a DBA allows a business to operate under a name different from its legal name.
Establishing a DBA can often be a simpler and less cumbersome process than changing the legal entity name, especially when the aim is to merely alter the business’s front-facing brand identity rather than its underlying legal structure. DBAs are filed with a state or country agency, not the IRS, and in many cases are required to be unique within the jurisdiction.
It’s important to remember that renaming a company isn’t a uniform procedure—it can vary considerably from state to state. The details of the process can depend on several factors, including the location of the business and the legal structure it operates under. That’s why it’s highly advisable to consult with the relevant state agency to ensure you’re following the correct procedures for your area and business type, avoiding any potential legal or operational hiccups down the line.
FastFilings is a privately owned business-to-business company that offers a variety of filing services and document assistance, helping businesses smoothly apply for seller’s permits, certificates of good standing, and other important documents. Check out our handy infographic below on changing your business name.
