As a freelancer, choosing the right business name is essential. Many founders underestimate the importance that a suitable name has for their own business. Therefore, it is particularly important to understand and strategically utilize the differences between a business name and a company name. This guide provides you with a comprehensive overview of the topic.
Key Insights
- As a sole trader, you are not a separate legal entity; your business is closely linked to your name until a company is founded.
- A business name can help you present yourself more effectively in marketing and customer engagement.
- When converting to a GmbH or other company forms, you can continue to use your already chosen business name.
Step-by-Step Guide
Step 1: Understand the difference between business name and company name
Before you decide on a name, it is important to understand the difference between a business name and a company name. As a sole trader, you are not legally considered a company; rather, you are a business person. Therefore, when registering, you are usually required to enter your own name in the corresponding field.
Step 2: Use a business name
However, the legislator allows you to use a business name. This can differ from your name and be creatively designed. You may choose fictional names or descriptive terms that reflect your activity. However, your legal name must always appear alongside to clarify your identity as a sole trader.
Step 3: Come up with a suitable business name
This is where the creative part comes in: Think of a business name that is both appealing and meaningful. It should possibly reflect your services and be positively received by your target audience. For example, a name like “Coding Tutor – Jan Bringmann” could summarize your activity well.
Step 4: Plan for the future
Think ahead about your potential plans to convert your business into a GmbH or another legal form. If you start with a creative business name, you can often easily adopt it later. This saves you the trouble of having to find a new name at a later date when it becomes official.
Step 5: Consider the resale value
Another crucial point is the future resale value of your business. For example, if you want to start a software service startup, it makes sense to work with a business name. If you ever want to sell your business, it will be easier if the branding operates independently of your personal name.
Step 6: Be aware of the marketing advantages
A well-chosen business name can not only provide legal benefits but also ensure effective marketing. The right name can help you clearly address your target audience and give you the opportunity to stand out from other providers. This way, your brand embeds itself in the minds of your customers.
Summary – Business Start-up: The Optimal Business Name for Your Success
The choice of the right business name is a decisive factor for long-term success. By choosing a suitable name early on and planning strategically, you can set the course for a successful business future.
Frequently Asked Questions
What is the difference between a business name and a company name?A business name can differ from the legal name, while the company name is legally relevant when founding a company.
Does the owner's name have to be included with the business name?Yes, the owner's name must always appear alongside the business name.
Can I continue to use my business name when converting to a GmbH later?Yes, the business name can often be continued when the GmbH is founded.
What happens if I want to sell my business?An independent business name makes selling easier, as the new owner is not tied to your personal name.
Is it advisable to choose a fictional name for my business?Yes, a fictional name can help you market yourself more effectively and differentiate yourself from competitors.
