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Business Name Search: How to Check if a Business Name is Taken - LLC.org
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Once a person decides to start a business, he has several steps to take before registering the business, including running a business name search and ensuring it has not been used by someone else.
When choosing the business name, it is imperative that the business owner choose wisely, as it becomes the business’s brand – it is how people relate to the business. The name should be short enough to make it easy to remember, it should be the first thing people think of when they think of the product or service the business offers, and should not be close enough to another business’s name that people can confuse it with the other business, especially if the similar business has a less than stellar reputation.
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The rules for registering a business name depend on the type of business entity you choose. Business filings for the various types of business structures are also different, as is how the IRS taxes the business. (See our guide to LLC costs by state.) When choosing a business name, you must consider all of these factors, including the name type attached to the business name. For example, if a business owner wants XYZ Corp., she cannot be a sole proprietor.
A business owner can choose from a main name or a “doing business as” name, often referred to as a DBA. If you are a sole proprietor, you might choose a DBA because some states require a sole proprietor to use only her given name. Thus, instead of Jane Doe, you might register a DBA of Doe’s Accounting Services if the business is a sole proprietorship.
If the business owner plans on incorporating or using another entity, such as a limited liability company, he can also use a DBA.
For example, he might choose Doe’s Farms DBA Tall Tree Logging and Forestry Services since Doe’s Farms doesn’t really describe what you do.
The benefit of this is that a business owner can also create another business under the same name if the state laws allow it.
For example, if the business owner logs and provides forestry services in spring, summer and fall, but in the winter months, provides snowplowing instead, the business owner could name that second business Doe’s Farms DBA Clear It Snow Plowing.
While most states do not require a business owner to register her personal name, if the business owner adds to it, he might want to register it. Additionally, some states do not require that the business create a company if it uses a DBA but might or might not require the business to register the DBA name.
Even if the state does not require a business to register a DBA name, it is recommended that the business do so, or else someone else could use the same name.
Finally, if the business owner wants to open a separate bank account for the business name “John Doe,” the bank might require you to register the name, even if the business is not using a DBA.
Other types of entities include corporations, limited liability companies, limited liability partnerships, general partnerships, and nonprofit corporations.
Every state has rules and regulations regarding registering business names. A business entity name must contain the type of entity. For example, if a business owner chooses to incorporate as a limited liability company, it must have LLC, L.L.C., or limited liability company in the trade name.
Always check the state’s rules, as they are different for each state.
For example, if the business owner wants to register a DBA in Florida, she would file a fictitious name registration. This does not create a company. If the business owner wants to create a company – corporation, limited liability company, etc., she registers the name at the time she creates the company.
Some states might not allow you to reserve a name while others might require a business owner to file an application for the DBA name just as you would if you were incorporating the primary name.
Additionally, some states allow business owners to reserve a name. Always review your state’s rules for reservations – they sometimes expire. If the name reservation expires before the business owner can register the name, another person or company could use the name.
If a business owner plans on having an online presence, he should also check with a domain registrar to see if the online name has been taken. Businesses and individuals do not have to register a name with the state to use it online. Thus, Joe’s Tree Service could be taken online.
To check if a domain name is available, visit any of the domain registrar’s sites – GoDaddy is a popular site – to check if the business name is available. The domain name does not need to be the same as the registered business name. Thus, if the name for Joe’s Tree Service – joestreeservice.com – is taken, a business owner could use joestreecuttingservice.com or another form of the name.
A business owner can search most state databases online to determine whether the name is available. Additionally, most states allow a business owner to incorporate online.
Always do a business name search for name availability before naming your business as no state will allow you to use a business name that is already in use.
Some companies prefer to set up in another state, usually because another state’s tax rules and corporate rules are better for businesses than the state where the business owner lives. For example, a business owner in New York might prefer to set up a limited liability company in Delaware.
Should a business owner decide to incorporate in another state, she must follow that state’s rules for setting up the company. Another state might require a business owner to reserve a name, then register it, or might skip the reservation process. Regardless of which state a business chooses, the name cannot be the same as another business name in that state. Since the business will be doing business in the home state, the name should also be available in the home state.
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