What is a "trade name"?

A trade name refers specifically to the name under which a business operates and presents itself to the public. This name is crucial for branding purposes, as it is how customers identify and recognize the business in the marketplace. A trade name can be different from the legal name of the business entity and often is selected to create a memorable image or convey a particular message about the products or services offered.

For instance, a company may be legally registered as "XYZ Corporation" but operate under the trade name "Best Gadgets," which aligns more closely with its marketing strategy and customer appeal. This distinction highlights the importance of a trade name in building brand identity and customer loyalty, setting it apart from other business concepts related to ownership, finance, or founder names.