toiminimestä

A toiminimi is a Finnish term that translates to "trade name" or "business name." It refers to a name under which a sole proprietor or a partnership conducts business. This name can be the individual's own name, a modified version of their name, or a completely fictitious name. The primary purpose of a toiminimi is to distinguish the business from other entities and to create a brand identity for its operations.

Registering a toiminimi is typically a straightforward process handled by the Finnish Patent and Registration Office (PRH). When registering, it's important to ensure that the chosen name is not already in use and does not infringe on existing trademarks. The registered toiminimi provides a legal framework for the business's activities and allows for the opening of business bank accounts and the issuing of invoices under that name.

A key aspect of a toiminimi is that it is not a separate legal entity from the business owner(s). This means the owner is personally liable for all business debts and obligations. For example, if the business incurs debt, creditors can pursue the owner's personal assets to settle the debt. This contrasts with limited liability companies (osakeyhtiö), where the company's debts are separate from the owners' personal assets.

Despite the personal liability, a toiminimi is a popular choice for entrepreneurs, especially those starting small businesses, freelancers, and consultants, due to its simplicity and lower administrative burden compared to other business structures. It allows for flexibility and direct control by the owner.