How to Choose a Company Name
New business owners have many important decisions to make, including choosing which type of business to open, choosing a location and selecting a name for their new companies. Although selecting a name may be the most exciting part of opening a new business, it is also one of the most important aspects. Selecting an appropriate name may be the difference between success and failure. Furthermore, later changing a company's name can be costly and time-consuming. Naming a business involves making sure there are no other businesses with the same or similar name, registering the chosen name with the secretary of state and filing "Doing Business As" or DBA certificates, as necessary.
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Instructions
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Selecting a Name
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Conduct market research. Consider your competitor's names. What are the names of the businesses that are successful in your market area? The U.S. Small Business Administration recommends imagining the name on a business card, company sign or as a logo.
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If you are considering trademarking your name, keep in mind that under the Lanham Act, companies with distinctive names have more trademark protection than generic names.
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3
Determine your state's laws regarding business names. If you are a sole proprietor, partnership or independent contractor, you must generally use your own name.
Search the Availability of Business Names
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Conduct a trademark search of existing trade and business names. If you begin using someone else's registered trademark as your business name, you risk facing a lawsuit for trademark infringement. The U.S. Patent and Trademark Office provides an electronic database of existing registered trademarks.
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Conduct a domain name search on the Internet.
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Review the results of your searches. You may need an attorney to help you understand which names are too similar and may be likely to cause public confusion.
Register Your Name
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File DBA certificates. If you adopt a trade name, you must file a DBA certificate with your local circuit court, state corporation commission or secretary of state's office.
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Adopt any necessary extensions. If you are a corporation, limited liability company or limited liability partnership, your state's business laws may require you to use an appropriate designation giving notice to the public and potential creditors of your limited liability status. For example, if you are a limited liability partnership, your company's name may have to carry the "LLP" designation.
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Consider registering your name for federal trademark protection.
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Tips & Warnings
In many states, the secretary of state's office automatically registers a business name for corporations, limited liability companies and partnerships once it files articles of incorporation or organization.
Some counties require business owners to file fictitious name affidavits or statements in local circuit courts.
The information in this article should be used for general guidance. For specific assistance, seek the advice of a licensed attorney in your state or contact your state's bar association for information on pro bono legal assistance.
