Step 3
Obtain a Business Name
As a member of LLCSetup101.com, you’ll gain access to valuable resources including data and instructional videos that will help you choose an appropriate name for your business entity while also guiding you on what to avoid to minimize the risk of potential name infringement issues.
This is the 3rd step and one of the most complex steps in the formation process. It is important that you read and follow what is below!
The number one reason for a state to reject an LLC is state is that it has a name that is the same as another already registered business. This means that the owner did not thoroughly research the name before applying.
Instructions
It’s advisable to perform a comprehensive search to make sure the name you choose is not already trademarked or in use by another entity. We have provided links to your state’s Secretary of State website and a link to the (USPTO) U.S. Patent and Trademark Office, so you can check the availability of your desired name.
It is crucial to check the availability of your desired LLC name not only in your state’s database, but also with the US Patent and Trademark Office (USPTO) to ensure full protection of your LLC and avoid potential legal issues.
Checking Name Availability on the State & USPTO Websites
The state’s Secretary of State website and the USPTO website do not communicate with each other directly. Which means that the name of your LLC might be available the states website, but may not be available on USPTO’s website or vice versa.
The USPTO maintains a federal trademark database that you can search to ensure that your desired business name is not already trademarked by another business. Registering a trademark with the USPTO provides nationwide protection for your business name, logo, or other intellectual property, and can help prevent others from using a similar name or logo.
What to Consider When Naming Your Business
The name of your business must include at the end of your business name.
- LLC
- L.L.C.
- Limit L.C.
- Ltd. Liability Co.
- Limited Liability Company
Yes, it is important to check the availability of your desired LLC name not only in your state’s database, but also with the US Patent and Trademark Office (USPTO) to ensure full protection of your LLC and avoid potential legal issues. It’s advisable to perform a comprehensive search and make sure the name you choose is not already trademarked or in use by another entity.
Select a domain name that matches your business’s name or a relevant abbreviation. For instance, if your business is called “ABC Marketing,” your domain could be “abcmarketing.com.” A matching domain reinforces your brand.
Yes, certain businesses and professions may require additional credentials or licenses to be added to the LLC name. Here are some examples:
- Bank, Banker, Banking
- Attorney
- University
- Realtor
- Pharmacy, Rx, Apothecary
- Architect, Architecture, Architectural
- Certified Public Accountant / CPA
- Engineer, Engineering
- Daycare / School
- Landscaper
Note: It’s important to check with your state to make sure that the name you choose for your LLC doesn’t require a special license or additional credentials. Different states have different requirements, and some names may be restricted or regulated in certain industries. By verifying these requirements beforehand, you can ensure that your LLC is in compliance with all necessary regulations and avoid potential legal issues.
Most states regulations will require that your name be unique or distinguishable. Using common terms like “The,” “And,” “&,” as well as adding punctuation or making the name plural (s) (es), will not make it unique. Additionally, adding the name of a city to the business name is not allowed.
Yes, your LLC name cannot imply that it is or have the name of a government agency. This is to avoid confusion with actual government entities and to comply with legal restrictions on the use of government names and symbols. Some examples of restricted names are:
- CIA
- FBI
- HUD
- FDA
- Police
- Treasury
- State Department
- Supreme Court
It is advisable to research and determine if you can secure a domain name and social media accounts that align with your business name, especially if you plan to be active on multiple social media platforms.
- Make it descriptive – Business names that clearly describe the product or service tend to be more successful, according to smallbusiness.findlaw.com.
- Keep it simple – Choose a straightforward and easy-to-remember name for your customers.
- Choose a comprehensible name – Pick a name that is easy to pronounce and recall.
- Take your time – Give yourself time to think about the sound and meaning of the name before making a decision.
- Consult with professionals – Naming firms have the expertise to help you find the right name for your business, taking into account trademark laws and what makes a good name. They can research your market and help you establish your market identity.
- It’s Too Hard To Say – Difficult to Pronounce Names – Avoid names that are hard to say as people may have trouble remembering them
- Your Name Is Too Descriptive – Descriptive Names – Avoid names that are too descriptive as they may lead to costly rebranding if your focus shifts in the future and can result in loss of time, money, and customers.
- Not checking to see if the name is available at the state level and national levels – Trademark Violation – Before choosing a final name, ensure that it does not violate someone else’s trademark rights to avoid having to change your business name and possibly paying damages in the future.
- Your Name Is Too General – Avoid names that are too generic or general as they may cause people to overlook your business. Find a name that highlights what you do without limiting future growth or direction.
Not having a Domain Name Available for your business
Domain Name Consideration – When selecting a business name, ensure that the desired domain name is available and reserve it, even if you don’t plan to set up a website immediately, to prevent someone else from taking it.
Overthinking Your Name – Company Names and Brand Perception – Don’t overthink company names as they do not give value to the company. It’s the company and people’s perception of it that gives value to the name. The brand is much more than just a name, logo, font, or color. The name is just a small expression of the brand, don’t make it do all the work.
- Creative spelling of your business name – One of the most common errors that business owners make when naming their company is to opt for a “creative” spelling. The problem with this approach is that the name may become difficult to spell correctly, leading to confusion among potential customers. This can also make it more challenging for them to locate the business, as they may have trouble searching for it online or remembering it. Examples of problematic spellings include “Bobs Kar Wash,” “Qutie Pie Pastrys,” “Long Beach Phishing Boats,” and “Prestigious Guwlery.”
Legal Perimeters
While the state’s business name database and the USPTO’s trademark database serve different purposes, both are important for protecting your business name and ensuring that it is legally compliant. By conducting thorough searches on both databases, you can choose a strong and legally compliant name for your LLC.
Your LLC’s name must be unique and distinguishable from other businesses registered in the state. If you choose a name that is already in use, your LLC may be rejected or face legal challenges later on.
By checking the US Patent and Trademark Office database, you can ensure that your LLC’s name is not already trademarked by another business. This can help prevent legal issues down the line and protect your brand.
Having a unique and distinguishable name can make your LLC appear more professional and established, which can be important for building credibility with customers and investors.
