How to Choose the Perfect Name for our Business

The response your company gets from potential customers and potential employees is based on several factors. One potentially significant factor is the business name you've chosen. The name of your company is often the first thing a customer hears. Should you name your business after your family, or after the nature of business, a combination of both or an entirely unusual word? There are several ways to ensure you are choosing a good name for your business.

Difficulty:

Moderately Challenging

Instructions

1. Assess the nature of your business. Although not always true, the name should be such that prospective clients should be able to understand what your company is all about. Check the Yellow Pages listings of similar businesses in other states for ideas. Also, look up the words that pertain to your business in a thesaurus to find a variety of ways of describing it.

2. Understand that the name has to be good enough to incorporate future changes in the business and specific enough to pinpoint to the particular industry. If you plan on having a diverse service portfolio in the future, choose a name that is not too specific or reflects only a particular service.

3. Check out how prospective names sound by trying it on friends and colleagues or a focus group. This will give a fair idea of how others would react to various options. A business name will be everywhere: on your invoice book, official letterhead, sign boards, products, printed advertisements and even in your discussions.

4. Make sure that the name is easily annunciated. Avoid choosing a name that is unclear and difficult to pronounce.

5. Avoid choosing a geographical name for your business, as it tends to define territorial boundaries for the business.

6. Know that each state and each agency related to your business may have certain rules and regulations and conditions to be fulfilled. Research all the information required and then choose a name that will not contradict any of the legal stipulations.

7. Make sure that the name is unique and available. A business needs to have a name that is dissimilar to any other in the state. Contact the Secretary of State through the Web site, a phone call or letter and check out whether the name you want is acceptable in your state and reserve it. Your CPA may also check for registered business names.

8. Register your business name with the state authority. You may register as a corporation, LLC or limited partnership. Additionally, you should also go for trademark protection once you have registered your business name.

Tips & Warnings

• Use the incorporation services offered by professionals for a nominal charge. These include all the tedious paper work and time spent on research.

• Infringing on the trademarks that others use is a legally punishable offense and you should do your research carefully.