How To Choose A Business Name

Business names generally are required to be unique in the state of formation. Even in those states that allow multiple instances of the same name, it can be beneficial to the business to not be confused with another existing business. There are also other rules that must be followed.

When choosing a name, we have found the following to be some best practices to ensure your business isn't delayed by being rejected by the state.

All Business Structures

You may not use a business name that is intentionally misleading. For instance, you may not name your plumbing business "Smith Chiropractic"

Choose a unique name. Using initials and a generic industry term will often conflict with another business. "TJ Trucking" for example is likely not available, but "Jenkins Trucking and Transportation" might well be.

Separating initials with an ampersand (&) will not make it unique. In most instances, that symbol is ignored. Using the example above, "T&J Trucking" will be treated the same as "TJ trucking" when determining uniqueness.

Do not use punctuation other than hyphens (-) or ampersands (&). The IRS does not recognize any other punctuation, and even if the state does allow it, the discrepancy may cause problems when opening a bank account. You can still use punctuation in your marketing and advertising. For instance, "Jims Burgers" would be the legal registered name, but using "Jim's Burgers" on your sign, online ads or business cards is acceptable.

Adding an 'S' to make something plural will not suffice to make the name unique.

The word 'And' and the ampersand (&) are often considered the same thing in regard to uniqueness.

Using your own name in the business name, or the city in which you are based will often differentiate your business name from others.

When considering uniqueness, the state looks for a business to be easily differentiable from any other business.

Limited Liability Companies

LLC names must be unique within the state of registration, not only from other LLCs, but also from any corporation registered in the state. Some states will not allow LLC to be named the same as existing trade names either.

ALL LLCs require a designator alerting anyone doing business with the entity that it is registered as a limited liability company. Designators can be any of the following for an LLC: "Limited Liability Company", "Limited", "Ltd.", "LLC"

Corporations

Corporation names must be unique within the state of registration, not only from other corporations, but also from any LLCs registered in the state. Some states will not allow a corporation to be named the same as existing trade names either.

Corporation require a designator alerting anyone doing business with the entity that it is registered as a corporation. Designators can be any of the following for a corporation: "Incorporated", "Corporation", "Inc", "Corp"

Non-Profits

Nonprofit names must be unique within the state of registration, not only from other corporations, but also from any LLCs registered in the state. Some states will not allow a nonprofit to be named the same as existing trade names either.

Nonprofit rules vary by state, but generally do not require any designator like standard corporations or LLCs

Trade Names

Assumed Business Names, Fictitious Names, DBAs

Trade names can not have designators like "LLC", "Inc" "Corp" or "Ltd", nor can they have those words spelled out, "Limited", "Incorporated", "Corporation". Those designators have specific meaning.

A trade name does not "protect" the name or prevent anyone else from using the name. Although some states will not allow another business to register a name that is already in use, it does not mean that someone won't use it anyway. Your protections for a business name are only held in civil courts, and even then, generally only if someone is actually infringing on your notoriety (pretending to be you to get business they didn't earn).