What to Consider When Naming Your Business
Before you are able to file the articles of incorporation, you must decide on a name for your business. Choosing your business name may seem like it would be one of the easiest parts of forming a business. However, naming your business can be tricky, and it will take some research to ensure that you don’t end up in a lawsuit.
Research Your Business Name
If you already have an established business and just wish to incorporate it, naming your corporation may be as simple as adding “Inc.” to the end of your business name. However, it can be more complicated when you are starting from scratch. Before you settle on a final name for your business, you should have several variations of your chosen name, so you are not disappointed when one of them is taken. It is important to remember that your state will not allow you to file the articles of incorporation with the same name as another corporation already in the corporate database. You may be prevented from filing, or forced to amend your articles of incorporation, if your name turns out to be too similar as well.
When researching to determine if your chosen name is already taken, the best place to start is the Internet. This is especially true because you will want your web domain to be the same name as your business name, or at least as close as you can get to it. Doing a general search for your business name on a search engine will help you determine if your chosen name is already being used. However, if the name does not show up on the search engine, do not assume that you are in the clear. Another more fool-proof way to find out if the name you have chosen for your corporation is in use is to run a search through your Secretary of State. Most state websites offer this service to people who want to form new corporations. Many states will maintain a list of active corporations, which you can check against your desired name.
Remember that most states do not recognize a difference in the name if it starts with “the.” This means that if you want to name your corporation “The Orange Box, Inc.” and there is already a corporation named “Orange Box, Inc.,” you will be prevented from using your name. Also, most states do not recognize a difference in the identifier you use. This means that you may not name your company “Orange Box, Co.” or “Orange Box, Ltd.” when an “Orange Box Inc.” already exists.
Avoiding Trademark Infringement
You should be sure that you are not infringing on another corporations trademark. Trademark infringement lawsuits can happen when you choose a similar name as another corporation, as well as sell the same or similar product as that corporation. The thing to remember when choosing a name for your business is to avoid causing customer confusion with a similar business. For example, suppose you want to open a business to sell freezer units to restaurants. So, you research your desired name through search engines and the Secretary of State, and settle on “Freeze-away, Ltd.” as the name of your corporation. Two months after being in business, you receive a cease-and-desist letter from another company named “Freeze-my-way, Ltd.” that also sells freezer units to restaurants, and has been in business for years. While you technically have different names, “Freeze-my-way, Ltd.” may still have a viable lawsuit against you because there could be customer confusion between the two companies.
Consulting an Attorney
While researching a name for your corporation may be relatively easy, avoiding trademark infringement is more difficult. For this reason, you should consider getting the assistance of a trademark attorney before deciding on a name for your corporation. A trademark attorney can help you avoid a lawsuit, as well as avoid the process of having to rename your business once it is established.