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I’m a business setup expert with thousands of clients across the U.S., and one of my least favorite parts of the job is telling a new entrepreneur that the great name she’s selected for her business is legally untenable, and she needs to go back to the drawing board.
Poor girl, she never saw it coming. But she should have.
There are free tools available to help prevent this unfortunate occurrence. Here’s a logical three-step process for determining whether your business name is viable or too much of a liability.
Related: How to Name a Business: 7 Helpful Tips
Step 1. Conduct a free online search for your proposed business name
You won’t find every business in existence at the U.S. Patent and Trade Office, but what you will find are the ones that have filed for legal protection from other businesses who may be inclined to use the same or similar names.
Your risk of running afoul of trademark protection is highest if you find a business with an active trademark bearing your proposed name and in the same industry as you. Should that happen, then your only recourse is to purchase the trademark from its current owner (it may not be for sale) or select a different name for your business.
If the name is being used but in an entirely different industry, then that’s a whole other story. So long as there’s no reasonable risk of customers confusing your business for the other one, you’re in the clear. As a “for instance,” note how the Delta Faucet company coexists with Delta Airlines and no one’s any worse for wear.
Step 2. Check your state’s Secretary of State website to search for registered businesses with similar names
Corporations, LLCs, partnerships and nonprofits are required to register with the Secretary of State’s office, and the office should furnish a searchable database open to the public. Make good use of it.
Ever heard the phrase, “all politics are local?” Well, it applies here, particularly if your business is regionalized in nature, like a brick-and-mortar restaurant or store, or a professional services firm that specializes in legal, insurance, banking or tax matters in your state. You don’t want a similarly named neighbor building your brand and reputation for you — and they won’t be thrilled if you do the same on their dime.
Related: How to Choose a Strong Business Name and Amplify Your Brand
Step 3. Run the name through the standard search engines
Run your proposed business name through any search engine, and you’ll get a good sense of who’s out there making noise. You can discover where they’re located, what industry they’re in and you can probably get a sense for how mature their brand is. A long-established brand operating near you is more likely to watch for infringement than, say, a single-location mom-and-pop shop across the country.
For proper due diligence, however, identify any same-name/same-industry matches, and even if they’re not near you, it would be wise to look them up at the U.S. Patent and Trade Office (step 1) to see how thoroughly they’ve locked down their name. For all you know they may intend to expand into your neck of the woods, and if they hold a trademark on your name, then you’d be better off coming up with a new bon mot.
Other considerations
While this three-step approach is quick and efficient for determining when to say no to a business name, there are a few adjacent considerations of which you should be aware.
Is a suitable web domain available? It’s great that no one’s trademarked your brand, but that doesn’t mean that you’ll be able to secure the optimal web domains for your business. It’s not uncommon for speculators to buy bucketfuls of random domain names in hopes of selling them off to entrepreneurs like you. Check to see if your preferred domain names are available, and if not, how much would it cost to buy them from their current owners?
Depending on who owns your sought-after domains and how much they insist on charging you for them, you may find it less of a headache to scrap your current name and try another option.
Several free domain lookup utilities are available, such as those offered at Namech_k and Go Daddy.
What if another business has a DBA on file with the name I want to use? I recommend tackling this situation using the same three-step process I outlined earlier. DBA stands for “Doing Business As” and is a separate businesses filing used when someone wants to operate their business using under a name different from their legal entity name. What it boils down to, again, is whether a trademark has been filed, whether the DBA brand is in the same industry and location as your business, and how established the DBA brand is, i.e. how likely is it to be vigorously defended against infringement.
Is your business name actually good? Whether the name is currently in use or not is in many ways secondary to whether or not your proposed name is actually any good in a creative and business sense. Good business names are memorable, zingy, creative, aesthetically pleasing — and there’s no shortage of expert tips, techniques and dos and don’ts to guide you in the brainstorming and selection process.
Related: Finding Unique Business and Domain Names Is Harder Than Ever — Here’s How to Pick One That Stands Out
To wrap it all up and lock it all down
Should you find someone’s already up and running with your beloved business name, don’t fret. Be flattered. Keep in mind there’s no limit to your creativity. You’re bound to find something just as good without the added risk.
Once you find a viable name that you love, lock it down quickly by registering the business with your state’s SOS office. Register your trademarks with USPTO, and buy up those domains.
Congratulations on your new brand! May it live long and prosper!
I’m a business setup expert with thousands of clients across the U.S., and one of my least favorite parts of the job is telling a new entrepreneur that the great name she’s selected for her business is legally untenable, and she needs to go back to the drawing board.
Poor girl, she never saw it coming. But she should have.
There are free tools available to help prevent this unfortunate occurrence. Here’s a logical three-step process for determining whether your business name is viable or too much of a liability.
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