Choosing A Name
A name that is free of infringement, litigation and best for funding.
"Remember, your LLC's Name and Reputation is the foundation upon which your brand will be built."
Choosing a Name for Your LLC
One of the first and most important steps in creating your LLC is choosing the perfect name. Your LLC’s name is more than just a label – it’s a representation of your brand, values, and identity. LLCSetup101.com will guide you every step of the way.
Key Considerations:
- Relevance: Your LLC’s name should reflect your business’s nature, products, or services. It should give potential customers an idea of what your company does. For instance, if you’re into tech solutions, a name like “InnoTech Solutions LLC” immediately communicates your field.
- Uniqueness: Your chosen name should be distinct from existing business entities within your state. Conduct a thorough search to ensure that your desired name is available and won’t infringe on others’ trademarks.
- Memorability: A memorable name is a valuable asset. It’s easier for clients to recall and refer others to a business with a catchy name. Think of names like “Google” or “Amazon” – they stick!
- Professionalism: While creativity is encouraged, remember to maintain a professional image. Avoid overly complex or obscure names that might confuse potential clients.
- Domain Availability: In today’s digital age, securing a matching domain name for your website is crucial. Check if your desired LLC name’s domain is available for registration.
- Future Expansion: Consider your long-term goals. Will your chosen name still make sense if you expand your product line or services? Avoid limiting yourself to a narrow niche if you plan to diversify in the future.
Important Guidelines for a Name
The number one reason for a state to rejected 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.
When choosing the name of your LLC, it’s important to consider the following factors: availability, uniqueness, compliance with state regulations, avoiding restricted words and names, trademark and domain name availability, and whether the name accurately represents your business.
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.
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.
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
According to Wolters Kluwer, it is also prohibited for an LLC to have another entity type in it’s name, like “Corporation.”
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.”
Consider trademarking your business. A trademark can be any word, phrase, symbol, design, or a combination of these things that identifies your goods or services. It’s how customers recognize you in the marketplace and distinguish you from your competitors.
Brainstorming Techniques
Keywords: Identify relevant keywords related to your industry and combine them creatively. For instance, if you’re starting a fitness coaching business, words like “fit,” “wellness,” or “peak” could be part of your name.
Acronyms and Abbreviations: Consider using the initials of a longer name or a combination of important words. IBM (International Business Machines) is a classic example.
Mash-Ups: Combine two unrelated words to form a unique and memorable name. “Netflix” is a blend of “internet” and “flicks.”
Location-Based: Incorporate your geographic location into the name if it’s relevant to your business. “New York Gourmet Eats, LLC” establishes a clear connection.
Foreign Language: Use translations of relevant words in foreign languages to add an exotic flair. Ensure the meaning remains appropriate and positive.
Trademarking Your LLC's Name
What is Trademarking for Your Business Name:
A trademark for your LLC’s name is a legal protection that grants exclusive rights to use and identify your business name or logo in connection with the goods or services you offer. It helps distinguish your brand from others, prevents confusion in the marketplace, and establishes your identity as a unique entity. Trademarks are registered with government authorities, providing legal recourse against unauthorized use by competitors.
Protecting Against Trademark Infringement:
Trademark infringement for an LLC occurs when another entity uses a similar or identical trademark in a way that causes confusion among consumers. This unauthorized use can dilute the original brand’s distinctiveness or lead to false associations, potentially harming the business and violating the exclusive rights granted to the trademark owner.
If you want to use you LLC’s name as a mark and want the legal protect of federal and state laws then Wolters Kluwer, recommends you do these few things:
- Register under federal or state trademark laws
- Make sure trademark rights do not lapse
- Enforce trademark rights when improper use is detected
Here are a few reasons you should Trademark your LLC
The US Patent and Trademark Office list these reasons why you should have a Trademark:
- Legal presumption that you own the trademark and have the right to use it. So, in federal court, your registration certificate proves ownership, eliminating the need for copious amounts of evidence.
- Can use your registration as a basis for filing for trademark protection in foreign countries.
- Right to bring a lawsuit concerning the trademark in federal court.
- May use the federal trademark registration symbol, ®, with your trademark to show that you are registered with us. This may help deter others from using your trademark or one too similar to yours.
Foreign Language: Use translations of relevant words in foreign languages to add an exotic flair. Ensure the meaning remains appropriate and positive.
Reserving a Name for Your LLC
What is a Name Reservation
Name reservation for your LLC involves securing a specific business name for a designated period before officially forming the company. This reservation is typically done with the state or relevant jurisdiction where you plan to register the LLC. The purpose is to temporarily hold the chosen name to prevent others from using it during the reservation period, allowing you the time to complete the necessary paperwork and formalize the LLC. Name reservation requirements and durations may vary by jurisdiction, so it’s essential to check with the appropriate state authorities for specific guidelines.
Do You Have to do a Name Reservation for Your LLC
Foreign Language: Use translations of relevant words in foreign languages to add an exotic flair. Ensure the meaning remains appropriate and positive.
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