If the fictitious name of the company is registered with the state, you can open business bank accounts that allow for a more transparent financial process. In addition, the fictitious name must not be close to that of another company, including those in your industry. This can result in lawsuits under competition law, both at the state and federal levels. If the lawsuit is lost, there will be significant financial damage and your business may need to be renamed. Filing a DBA (Doing Business As) allows your existing or new business to do business under a name other than your company`s legal name. This can be useful for establishing a brand name or changing the name of a business without having to file an amendment to an original application. The first step in naming your business is to determine which business structure you will use for your new business. After that, you will think about at least 4-5 possible names. The more you think, the better. Once you have names, you can test them against best practices, name availability, and government guidelines. The legal name of a business can vary depending on the type of business structure. If you operate a sole proprietorship, the official name of your business is your full name (for example, Jason Williams).
You can include other words with your full name (for example, Jason Williams Insurance Corporation). However, you will need to provide your full personal name if you have a sole proprietorship. To legally name a business, you need to start a business with the name you want, file a DBA, or file an amendment to change the legal name. Then, a quick search of the U.S. electronic trademark search system will show you if someone else has already protected your name. Once you know the name is available, you can register a trademark for your business, although sometimes the cost of a startup or start-up is too high. A sole proprietorship is the simplest type of business. A sole proprietorship is an informal business structure that does not offer protection of personal property and does not need to be filed with the state. In some places, in order to obtain exclusive rights to the trade name, you must register it as your company`s trademark. This can be expensive and time-consuming, and it can be easier to find an official business name you like and do business under that name. There are many initial tasks when starting a business, and persistent issues with a business name can prevent you from focusing on the first important steps of your business.
The easiest choice for a business name is to use your official name. This means that for a sole proprietor, you can use your personal name for your business and business name. To make a legal name a trade name, you can add the profession. For example, if Ethan Smith is the official name, Ethan Smith Accounting could be the trade name. It`s an easy way to show what your business does. Check with your state to see if adding the business name requires name registration. If the word added indicates that there is more than one owner, such as Ethan Smith and Company, you must register the name. A business name can be a good idea if your business name is easier for customers to say and remember. While most people know what LLC or Inc. or Co. means, it can feel awkward at the end of a smart business name.
The cost of registering a business name differs depending on your needs and your state`s filing fee for reserving a business name, starting a business, filing a DBA, or filing a legal change to your company name. Conversely, a business name can be an entirely new name that is more catchy, helps show what your business does, and sounds more professional. An example would be a marketing company that wants to demonstrate its skills by coming up with a creative business name instead of using the owner`s name. If you haven`t decided yet, choosing the best business structure for your new business is an important step, as different business structures have different pros and cons and different naming rules. Whether or not you register a trademark, it`s good to know if your name is already taken. Business structures can be formal or informal and are how your business is formed, operated and taxed. We cover all of the following naming requirements for the following business structures: You do not need to have a business name; You can easily do business with your full official name.