Business name is one of the first things potential customers notice about your company.
It connects your customers to your products or services. With a good business or trade name, your business is one step closer to being successful.
Table of Contents
- What is Business Name?
- Business name vs. business trade name.
- Different Types Of Business name
- ADVANTAGES OF BUSINESS NAME
- Benefits Of Registering Your Business With CAC
- How To Register Your Business With CAC In Nigeria
- Conclusion
What is Business Name?
Business name is your business’s legal name. It is the official name of the person or entity that owns the business it’s also the name you use on your government forms and business paperwork.
Business name is one of the first things potential customers notice about your company. It connects your customers to your products or services. With a good business or trade name, your business is one step closer to being successful.
Business name vs. business trade name.
What you call your business can make or break your company’s success. Sure, there are a lot of things that play a role in how successful your business is. But, your .business’s name is definitely a key component.
Typically, a business will have both a legal business name as well as a trade name. The legal one, as mentioned, appears on legal documents and government forms. On the other hand, a trade name generally appears on advertisements and signs.
When it comes to what you call your company, you need to know whether it’s more beneficial to use your business name or trade name.
A trade name may also be called a doing business as (DBA) name. It’s the name the public sees. Think of it as your business’s nickname. Businesses may use their trade or DBA name for marketing and sales purposes instead of their legal business name to help draw in more customers.
Different Types Of Business name
The name you give your business’s can vary depending on its type of business structure. If you operate as a sole proprietorship, your business name is your full name (e.g., omotola gbadebo). You can include other words along with your full name (e.g., omotola gbadebo Corporation).
However, you must include your full personal name if you have a sole proprietorship.If you are an owner of a general partnership, the business name is typically a combination of the last names of the partnership’s owners and must be included in the partnership agreement.
Limited liability companies (LLCs) and corporations must establish their legal names when registering the business. Unlike other business structures, the business legal name for LLCs and corporations does not have to include any of the owners’ names to be the business name. However, some states require LLCs and corporations to include “LLC” or “Corporation” in their legal name (e.g., Loland Technology LLC).
ADVANTAGES OF BUSINESS NAME
- Business name requires little capital
- Business name is easy to registerProfit of the
- business is solely owned by the ownerTax liability in Business name is minimal
- Decision making is easier with Business name. ie No need for board resolution or annual meetings.
- Level of ownership, shareholding, investment and interest are not publicly recorded
- Business name requires less formalities
- A sole person can register a Business name
Benefits Of Registering Your Business With CAC
- You can open a corporate account with your registered business certificate.Potential customers feel more comfortable paying into a corporate account because they know their money can be traced. And you can open a corporate account with any bank of your choice with a registered business.
- You can apply for loans and grants when your business is registered. When you register your business, customers trust you because they see you as legit and reliable.
- Registering your business is the first step to getting your business structured. Without registering your business, you are running a glorified hobby.
- A registered business gives clients confidence that they are dealing with a reputable organization.When your business is registered, even if you are dead or become incapacitated, your business continues especially when you have the right structure in place.
- A registered business gets easy access to loans and boundless opportunities.You have better access to investors with a registered business as investors look at the business structure first before investing.
- With a registered business, you can easily obtain a visa and travel to any country for business purposes and conferences.Registering your company enhances the reputation and perception of your business to prospective clients.
How To Register Your Business With CAC In Nigeria
Business name is registered by a sole proprietor and can be registered by either one person or two people max.
YOU CAN GET OUR STEP BY STEP GUIDE ON BUSINESS NAME REGISTRATION.
Business name registration made easy
To register as a limited liability company previously, you will need at least two directors and a secretary. However, a new law allows one person to register a limited liability company.
However,you can register your business either as a Business Name or a Limited Liability Company.If you register as a business name, all business liabilities are on you. On the other hand, if you register as a limited liability company, the business is seen as a separate entity from the owner. So, all liabilities of the company are borne by the company.
Register Through CAC Online Portal
To register online, follow the steps below:
- Visit services.cac.gov.ng
- Create an account
- Log in
- Do a public search of your preferred name
- Reserve your business name
- Follow other procedures as directed.
YOU CAN GET OUR STEP BY STEP GUIDE ON BUSINESS NAME REGISTRATION.
Business name registration made easy
Conclusion
For individuals wishing to start up a business with low income or less capital, then business name registration is a suitable option for you. It is easy to set up, and less formality. It can equally be converted to limited liability company when necessary.
You can also check out our popular article on easy way to make money Online in Nigeria
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