Why Register a Trade Name Under Your Existing Corporation
Original Publish Date: May 24, 2019
If you have an existing business and want to operate under a different business name, registering a trade name can be a smart move. Known as a “doing business as” in Ontario or DBA, this registration lets you use a name other than your corporation’s official title.
In Ontario, only corporations and general partnerships can register a trade name. Sole proprietorships don’t have the option to add a doing business as name under their registration. Let’s explore the benefits of adding a trade name to your business and the steps to get started.
What is a Trade Name?
A trade name, or DBA, is a way for a business to legally operate under another name without changing the official corporate name. Operating a business as a DBA allows you to use a different trade name without changing the legal name of your company. This option provides corporations with flexibility for branding while keeping their formal legal structure.
Ontario trade name registration can be beneficial for businesses expanding into new markets, introducing new products or services, or simply wanting to build brand recognition without altering their corporate name. A business name registration for a corporation allows a company to operate under a unique name that reflects its brand while meeting Ontario’s legal requirements.
The Benefits of Registering a Trade Name Under Your Corporation
Filing a business trade name registration can be helpful in several ways:
- Brand Flexibility: Using a tradename allows a corporation to present itself to customers under a name that’s easier to remember or more relevant to its products or services. For example, a corporation named “12345 Ontario Inc.” could operate as “Elegant Event Planners” for a more memorable brand.
- Market Flexibility: If you’re offering new goods or services, a trade name can help separate this new focus from your existing brand. For instance, “Toronto Sweets Inc.” might add a tradename like “Savory Slices” if they start selling sandwiches.
- Streamlined Marketing: Using a trade name helps businesses drop the formal corporate endings like “Inc.” or “Ltd.,” which may look better on signage and marketing materials. This approach simplifies how clients see your business, making it easier to attract new customers.
- Convenience Across Locations: If your corporation has multiple locations, using distinct trade names for each can help target local markets effectively. For example, a plumbing company could register trade names like “Toronto Plumbing” and “Hamilton Plumbing” to better serve specific communities.
Considerations When Registering a Trade Name
Before registering a trade name for your corporation, it’s essential to know the basics:
- Costs & Renewal: Trade name registration is generally affordable and easy to manage. However, requirements differ by province. For example, tradename registration in Ontario, along with sole proprietorships or partnerships, require renewal.
- Taxes: Since a trade name operates under an existing corporation, it doesn’t require its own business number or separate tax filings. The corporation, as the legal entity that conducts business, remains responsible for taxes. If you’re unsure about your tax responsibilities, consider seeking legal advice to ensure compliance with corporate regulations.
- Multiple Trade Names Allowed: Ontario corporations can register multiple tradenames, allowing you to operate in various markets or test new products or services with minimal risk. They will each be registered business names in Ontario, but will fall under the responsibility of the corporation.
- Limited Legal Protection: Registering a trade name does not provide name protection. Name protection applies only to the corporate name; it protects your official corporate title, but not tradename.
When Should You Consider Registering a Trade Name?
Now that we’ve covered the benefits, let’s look at when you should think about using a trade name:
- When You Operate as a Numbered Company: If your corporation has a number-based name like “12345 Ontario Inc.,” a tradename like can help build a more memorable brand with you carry on business.
- When Simplifying Your Name for Marketing: If your full corporate name includes formal endings like “Inc.” or “Ltd.,” using a trade name allows you to drop them. For example, “Sunshine Landscapes Inc.” could register “Sunshine Landscapes” as its tradename for marketing purposes.
- When Expanding to New Markets: A tradename allows you to branch into different products or services. For instance, “Pure Fitness Inc.” could expand with “Pure Supplements” as a tradename if they start selling fitness supplements.
- For Professional Corporations: In some cases, professional corporations, like those of accountants or lawyers, want to operate under a brand that isn’t limited by regulatory naming rules. A tradename like “Main Street Accounting” gives them the flexibility to do so.
Business Name Search Before Registering Your Trade Name
Before moving forward, you should check the availability of your desired tradename. In Ontario, a NUANS reservation is not required for trade name registration. Completing a preliminary NUANS search can help you avoid potential conflicts with existing businesses. Provinces like British Columbia, Saskatchewan, and Manitoba require a name reservation through the Provincial Ministry.
Ontario Business Central’s help with name approval and business name registration, we can conduct the necessary searches for you.
Steps to Register a Trade Name for Your Corporation in Ontario
When ready to register, here’s what to expect:
- Choose & Confirm Your Trade Name: Order a preliminary NUANS name search from Ontario Business Central to confirm that your name is available. This step isn’t required in Ontario when registering business trade names, but can provide peace of mind that your name is unique. A NUANS reservation is required when you incorporate your business.
- Complete Registration: Ontario Business Central simplifies the tradename registration process, ensuring you meet Ontario’s legal requirements and have all necessary documents.
- Understand Renewal Requirements: Keep track of renewal dates to maintain your trade name registration. In Ontario, trade names are valid for 5 years. Ontario Business Central will help you stay on top of renewals and send renewal reminder e-mails.
How Ontario Business Central Can Help
Ontario Business Central provides quick, reliable support for trade name registration in Ontario, with expert knowledge in provincial regulations. Our services cover everything from business registration to managing legal requirements, and we can help ensure a smooth process in Ontario or other Canadian provinces.
Learning how to register a trade name in Canada can help your business operate under a unique name that distinguishes its brand without changing the legal name.
FAQs About Trade Name Registration for Corporations
What’s the Difference Between a Corporate Name & a Trade Name?
A corporate name is the official registered name of the business. A trade name is simply the name the business operates under for branding purposes.
Can I Register More Than One Trade Name?
Yes, Ontario corporations and General Partnerships can register multiple tradenames, allowing flexibility for various market focuses or products.
Is My Trade Name Legally Protected?
Unlike your corporate name, a tradename does not have name protection. Ensure your corporate name is unique for maximum security. When you register your business, the details become part of the public record, accessible to anyone searching for information on registered companies.
Can I Change My Trade Name?
You can cancel a tradename anytime and register a new one. Ontario Business Central can assist with filing a new DBA in Ontario. Like a sole proprietor, the registered name cannot be changed. Ensure you choose a business name that aligns with your brand and objectives.
Get Started Today With Ontario Business Central
If you’re ready to register your trade name, Ontario Business Central provides reliable support across Ontario and other provinces. Our team can guide you through every step of the process, making it easy to establish a brand under your corporation’s umbrella. Our experts can answer any questions you have about how to register a company name in Ontario.
If you have questions, our support team is ready to assist with your business needs via phone, email, or chat.
inquiries@ontariobusinesscentral.ca
Toll-Free: 1-800-280-1913
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Fax: 1-866-294-4363
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Ontario Business Central Inc. is not a law firm and cannot provide a legal opinion or advice. This information is to assist you in understanding the requirements of registration within the chosen jurisdiction. It is always recommended, when you have legal or accounting questions that you speak to a qualified professional.
