One of the most important things when choosing a business name is to make sure that another company doing the same kind of business isn’t already using that same name. If another company uses the same or almost the same name to market a different product it might be ok for you to use that name as well. Nevertheless, it is recommended to not use or try to slightly modify an already famous company name such as when using “M&M Marketing” for example. By attracting the attention of big companies you might end up facing difficult lawsuits. It also will cost you a lot of money to change all of your marketing material if you were forced to change your name.
In order to make sure that your future business name isn’t already used it is recommended that you do full and precise research:
- Do an internet search to see if any website has the same name.
- Do a search in the fictitious business name database.
- Do a search in the Corporation, LLC and limited partnership databases on the Secretary of State website and then register your business name with the Secretary of State.
It is also advised that you do a search in the federal trademark database to ensure the full protection of your name. Indeed, companies registered on a federal level are allowed to use their business name anywhere in the country. If you decide to use a trademark that is on the federal register you can be liable for a willing full infringement, which means, “knowingly violating somebody else’s trademark”. You could be liable even if you never checked the federal register in the first place. To access the federal register, please visit the United-States Patent and Trademark office website at http://www.uspto.gov.
If you plan on doing business on an international level, please also take time to check international databases.
In which situations do I have to register for a fictitious name?
- When the business name you are using does not contain the legal name of the owner(s) or contains only surnames.
- If you plan on selling some products under a different name.
- If you want to sign documents with that new name.
- If you want to open a bank account with the name you are using to “do business as” (dba).
- If you are an LLC and plan on doing business without adding “LLC” to your business name.
In California you register your fictitious name with the county. The easiest way will be to contact your county check to find out what are the filing requirements and the fees. Your registration will usually be valid for 5 years or so before you will have to renew.
Certain changes in your business such as the number of owners might require you to renew your registration before the end of its validity. Some states will require that you publish your fictitious name in a local newspaper (once a week for a month for example) and submit a proof of publication to the county clerk.
You may also have to register your business name with the IRS and get a federal tax ID. Indeed, if you have employees, you will have to have an EIN (Employer Identification Number). Moreover, in order to make sure that you are paying local and state taxes as well, you may have to register with your state tax and revenue office. This depends on the type of entity you choose for your business.
Registering your business with every governmental agency required is the best way to secure your business name, avoid confusions and make sure you don’t loose any business!