How to Name Your Business

There is more to naming your business than just coming up with something that sounds good that you happen to like. Thought must be given to state and local requirements and making sure you don’t infringe upon the rights of someone else’s business name. Legal Requirements and Implications Picking a name for your business requires more than just creativity and a working knowledge of your target market. First you need to decide which business structure you will use, since each structure has its own peculiarities. For example, many states require a sole proprietor to use their own name for the business name unless they formally file another name as a trade name, or fictitious name. Similarly, you need to determine whether your trade name will be the same as the full legal name of your business. Of equal importance is finding out whether your name or a very similar name is being used by another business, and if so, what rights they may or may not have to use the name in the area where you do business. Keep in mind that some businesses only file trademarks within their locality, so it’s possible that the same name can be used elsewhere.