What is the difference between a business legal name and trade name?

Every company is required to have a "corporate name", which is the legal name of the company, the one that appears on administrative and tax documents.

In short, the legal name is the formal and official name of your business that the government recognizes and it varies depending on the business structure of your company.

On the other hand, a trade name is what a business uses to operate and interact with customers. In simple terms, it's how a business introduces itself to the public. Some people use a name they like instead of their official one. Businesses can do the same.

Using a trade name is optional, and some companies might not need one. They can use their legal name if they prefer. But many businesses, regardless of their type, use trade names that are different from their legal ones.