Is It Advisable to Create Two Names for a Music Publishing Limited Liability Company?

When registering a new music publishing limited liability company, it's natural to consider whether you should use both a legal name and a corporate name. In some cases, this decision is made for strategic reasons such as branding or securing trademarks and website availability. However, there is no inherent necessity to use more than one name simply because you can. The distinction between legal names and Doing Business As (DBA) names can be crucial, but the decision should be informed by practical considerations.

Corporation vs. DBA: What’s the Difference?

A corporate name, also known as a legal name, is the name under which your music publishing limited liability company is registered with the relevant governmental authority. It is a legal entity with corresponding legal rights and obligations. This name is binding and cannot be easily changed once registered without following a formal process.

Alternatively, a DBA (Doing Business As) name is a name you use to conduct business under, which is different from the official registered company name. A DBA can be thought of as a trade name or a business alias. The advantage of a DBA is that it can provide a separate brand image or identity that can be tailored to specific marketing strategies without needing to change the primary legal name of the company.

Why Use a DBA Name?

The decision to use a DBA name is primarily driven by marketing or branding considerations. A DBA name can be particularly useful if customers refer to your company using a different name or if there is a specific market segment that would respond better to a particular brand name.

For example, let's say ABC Music Publishing has registered the legal name 'ABC Music Inc.' But if ABC Music Inc. customers are commonly referred to as 'The Sweeper Company' due to the nature of their services, it might make sense for ABC Music Inc. to start using the DBA name 'The Sweeper Company' to align with customer expectations and enhance brand recognition.

Pros and Cons of Using a DBA Name

Pros:

Promotes brand consistency and recognition among customers. Allows for greater flexibility in marketing strategies. Can help capture market segments more effectively. Provides legal protection for trade names used in specific markets.

Cons:

Additional administrative tasks are required to register and manage DBA names. Potential for legal disputes if the DBA name infringes on existing trademarks or intellectual property rights. No legal protection beyond the inherent rights associated with the use of a business name.

When to Avoid Multiple Names

It is generally advisable not to use additional names for the same company unless there is a clear strategic benefit. This can complicate the legal and administrative processes and create unnecessary difficulties. Here are a few situations where additional names might not be necessary:

If the legal name is already well-known and effective. When the additional name does not offer significant marketing or branding advantages. In jurisdictions where multiple name registrations are overly burdensome and expensive.

Conclusion

In the context of registering a new music publishing limited liability company, the decision to use a legal name and/or a DBA name should be based on strategic and practical considerations. While a DBA name can offer a distinct brand identity or marketing advantage, it is not always necessary. It is important to weigh the potential benefits against the administrative overhead and legal risks involved.

If multiple names are indeed necessary, ensure that the legal and compliance processes are followed carefully to avoid any potential issues down the line.