| One of the first issues that a new business may deal | | | | natural person or partnership. State law may vary |
| with when forming a business entity is what to name | | | | slightly on the exact words that are required or |
| the company. There are several issues that you need | | | | permitted, but most states have similar requirements. In |
| to consider when choosing a name for your business, | | | | addition, your corporate name may not (1) contain |
| whether you are operating as sole proprietorship, | | | | language stating or implying that the corporation is |
| corporation or limited liability company. | | | | organized for a purpose other than that permitted in |
| Developing Associated Brand Identification | | | | state corporation laws or the corporation's articles of |
| Many small companies start out using some variation | | | | incorporation; or (2) contain language stating or implying |
| of their own name. This may be the simplest and | | | | that the corporation is connected with a state or |
| arguably least creative approach. So if your name is | | | | federal government agency or a corporation chartered |
| Pete and you are starting an auto body shop, you | | | | under the laws of the United States. State and Federal |
| might call your company "Pete's Auto Body." Pretty | | | | Trademark Considerations State and Federal |
| straightforward. It might work for Pete if the name is | | | | Trademark Laws will prohibit you from using a name |
| available in the corporation office and if there is not | | | | that is substantially similar to a name that someone |
| another Pete with an auto body shop in town. The | | | | else is already using. State law governs within your |
| downside to this approach is that it does not create a | | | | state. In order for a competing name to have |
| unique "strong" name that can provide depth of | | | | protection it must have been used in interstate |
| protection from a trademark perspective. If Pete lives | | | | commerce. The interstate commerce requirement is |
| in a small town and everyone knows Pete, the name | | | | fairly simple to meet except with a business that has |
| actually integrates a marketing component. Everyone | | | | made absolutely no business communications outside |
| knows Pete owns the place and everyone know that | | | | of the state. I think it is fair to say that all online |
| he does auto body work. | | | | businesses are exposed throughout the world and |
| Creating Credibility and Brand | | | | thus meet this requirement. |
| For companies that want to appeal to a broader | | | | Investigating Conflicting Business Names |
| market, the locally known name will not help much. | | | | The first place to start checking for competing names |
| They will want to create a unique name that identifies | | | | is the Trademark database at the Office of Patent |
| their product or service and that integrates into their | | | | and Trademarks. There, you can search for similar |
| marketing. For example, someone selling Widgets | | | | names that have been registered. However, this is not |
| online would not get a lot of mileage out of the name | | | | enough to assure that the name that you chose does |
| "Sam's Widgets." The product is identified, but the use | | | | not infringe upon someone else's trademark. The |
| of Sam's name creates a small local business aura | | | | reason for this is that Trademark Registration is is not |
| that may hurt Sam if he is trying to create the image | | | | what gives rise to protection Rather, a name is |
| as the world's leading supplier of Widgets. | | | | protected under the trademarks laws by using the |
| From a trademark standpoint, using your own name in | | | | name. There are benefits to registration. But use of the |
| the business name creates very week trademark | | | | name in interstate commerce is the act that |
| rights and provides you with narrow, if any, protection | | | | commences trademark protection. In order to be sure |
| against a third party using the name. The strongest | | | | that your name does not infringe, you need to take |
| name protection arises from names that gather a | | | | reasonable steps to make certain that no one else is |
| secondary meaning that the public naturally associates | | | | using the name. This is a more involved process than |
| with the product. The strongest names are also unique, | | | | simply checking the records of the Trademark Office. |
| made-up words that still identify the product or service. | | | | You can start by doing some searching online. You |
| For example, Sam might call his company "Widgetch" | | | | may find someone with a similar name right away. |
| or "Widgetorium." These are new words that are very | | | | Then you need to ask whether your use of the name |
| strong from a trademark standpoint yet identify the | | | | would infringe on the other party's use. To be |
| product that Sam is peddling. If you add a slogan to the | | | | morecertain, it is wise to have a common law |
| name in advertising, "Widgetech, the Worldwide Leader | | | | trademark search performed by a professional search |
| In Widget Technology," for example, that creates a | | | | company. The search will result in a comprehensive |
| believable aura that Sam's company is the true leader | | | | written report that encompasses a wide range of |
| in this area. On the other hand, "Sam's Widgets, the | | | | public records. Even though it is not 100% fool proof, |
| Worldwide Leader in Great Widgets" does not carry | | | | having this search result in your hands will provide you |
| as much strength. | | | | with proof that you took all reasonable steps to avoid |
| Corporate Name Availability | | | | infringing on someone else's use of a name. |
| Corporate name availability in your state is the first | | | | Fictitious Names |
| legal issue that you should look at. If someone else is | | | | In order to maintain the separate existence of your |
| already incorporated under a similar name, your | | | | company, you will want to make sure that you always |
| corporate documents would be rejected for filing. | | | | do business under your proper corporate name. There |
| Usually, you can check availability online or by calling | | | | is one exception to this. Most state laws permit you to |
| your state's incorporation office. The incorporation | | | | do business under other names called "fictitious |
| products that our company offers online actually | | | | names" provided that you file a fictitious name |
| include Ebooks with links directly to name availability | | | | statement as provided in the state's laws. For |
| resources for your specific state. | | | | example, Sam's Widgets, Inc., for marketing purposes, |
| Other State Law Considerations | | | | my decide to hold itself out as The Widgetorium. This |
| State laws will generally require that a corporate name | | | | is permissible in most states as long as a fictitious |
| be distinguishable from existing corporate names. If | | | | name registration is properly filed. |
| you do not check for availability first, and someone has | | | | Protecting Your Name |
| already incorporated under your name, your filings will | | | | The fact that you incorporate under a name does not |
| be returned to you and you will need to resubmit using | | | | of itself protect your name from use by others. All |
| a different corporate name. | | | | incorporation means is that no one else will be able to |
| Corporate Law Considerations | | | | incorporate using the same name in your state. If you |
| State law will also include requirements that your | | | | consider your corporate name or any other name |
| corporate name to contain the words such as | | | | used in connection with your business to be a valuable |
| "corporation," "company," or "incorporated" or the | | | | asset, you should take further steps to protect the |
| abbreviation "corp.," "Inc.," or "Co.," or words or | | | | name from use by others such as obtaining state or |
| abbreviations of like import in language. This is to | | | | federal trademark protection if available. |
| clearly indicate that it is a corporation instead of a | | | | |