Choosing the right name for your business is one of the most important early decisions you’ll make as an entrepreneur. Your corporate name becomes your identity in the marketplace, appearing on everything from legal documents to marketing materials. Whether you’re forming an LLC in Massachusetts or registering a business elsewhere, the process of creating and securing your business name requires careful consideration and specific legal steps.
Why Your Business Name Matters
Your business name serves multiple purposes. It identifies your company to customers, distinguishes you from competitors, and often communicates something about your products or services. A well-chosen name can:
– Create a strong first impression
– Help customers remember your business
– Convey your company’s personality or values
– Potentially improve your marketing effectiveness
The name you select will appear on all your business documents, your website, social media profiles, and marketing materials. It’s worth taking the time to get it right.
Checking Business Name Availability
Before you fall in love with a name, you need to ensure it’s available for use. This is a critical first step in the business formation process.
State Database Searches
Each state maintains a database of registered business names. In Massachusetts, for example, you can search the Secretary of the Commonwealth’s database to see if your desired name is already in use. Similar searches can be conducted in other states through their respective business registration offices.
Trademark Searches
Beyond state registrations, you should also check if your proposed name might infringe on existing trademarks. The United States Patent and Trademark Office (USPTO) maintains a searchable database of federal trademarks. Conducting a thorough search can help you avoid potential legal issues down the road.
Domain Name Availability
In today’s digital world, your business name should ideally match your website domain. Check domain registrars to see if your desired business name is available as a .com or other relevant extension. Having consistency between your legal business name and online presence creates a more professional image.
Creating a Memorable Business Name
When inventing your corporate name, consider these approaches:
Descriptive Names
These names directly describe what your business does, like “Quick Plumbing Services” or “Boston Tax Advisors.” The advantage is clarity—customers immediately understand your business. The disadvantage is that such names can be generic and harder to trademark.
Suggestive Names
These names hint at your business’s benefits without being completely literal. Examples include “Sprint” (suggesting speed) or “Amazon” (suggesting size and variety). These can be more distinctive while still conveying meaning.
Arbitrary or Invented Names
These include existing words used in unrelated contexts (like “Apple” for computers) or completely made-up words (like “Kodak” or “Xerox”). These can be highly distinctive and easier to trademark but may require more marketing to establish meaning.
Founder Names
Using your own name (like “Johnson & Johnson” or “Ford”) connects the business to a person. This works well for professional services but can limit future sale or expansion opportunities.
Name Type | Advantages | Disadvantages | Examples |
---|---|---|---|
Descriptive | Clear purpose, easy to understand | Generic, harder to trademark | American Airlines, General Electric |
Suggestive | Implies benefits, moderately distinctive | May require some explanation | Netflix, Pinterest |
Arbitrary/Invented | Highly distinctive, strong trademark potential | Requires marketing to establish meaning | Apple, Google, Exxon |
Founder Names | Personal connection, builds on reputation | Can limit future business changes | Dell, Disney, Ford |
Legal Requirements for Business Names
Once you’ve created a name, you’ll need to follow specific legal requirements based on your business structure and location.
LLC Naming Requirements
If you’re forming an LLC in Massachusetts or another state, your business name typically must:
– Include “Limited Liability Company,” “LLC,” or a similar designation
– Not include words that could confuse your LLC with a government agency
– Not include restricted words (like “Bank” or “Insurance”) without proper approval
– Be distinguishable from other registered business names in the state
Corporation Naming Requirements
For corporations, requirements generally include:
– Including “Corporation,” “Incorporated,” “Company,” “Corp.,” “Inc.,” or “Co.”
– Following state-specific rules about prohibited or restricted terms
– Being distinguishable from other registered names
Fictitious Business Names/DBA
If you plan to operate under a name different from your legal business name, you’ll need to register a “doing business as” (DBA) name. This is sometimes called a fictitious business name or assumed name. For example, if your LLC is named “Smith Enterprises, LLC” but you want to operate as “Green Valley Landscaping,” you would register “Green Valley Landscaping” as your DBA.
Filing Your Business Name
After selecting an available name that meets legal requirements, you’ll need to officially register it.
Secretary of State Registration
In Massachusetts, you file your business formation documents with the Secretary of the Commonwealth. In other states, this might be called the Secretary of State or Department of State. This registration typically includes:
– Your business name
– Your business structure (LLC, corporation, etc.)
– Address information
– Names of owners, members, or officers
– Filing fees
Name Reservation
If you’ve found a name you like but aren’t quite ready to form your business, many states allow you to reserve a business name for a fee. In Massachusetts, you can typically reserve a name for 60 days by filing a name reservation application and paying a fee.
Trademark Registration
For additional protection, especially if you plan to operate in multiple states, consider registering your business name as a trademark with the USPTO. This provides nationwide protection of your name and can prevent others from using similar names that might confuse customers.
Creating an Operating Agreement
For LLCs in particular, creating an operating agreement is an important step after naming your business. While not always legally required (though some states do require it), an operating agreement:
– Defines ownership percentages
– Outlines management structure
– Establishes rules for decision-making
– Details how profits and losses will be distributed
– Sets procedures for member changes or dissolution
Your business name will be featured prominently in this document, which serves as the internal governing document for your company.
Ongoing Reporting Requirements
Once your business is established with its official name, you’ll have ongoing reporting obligations.
Annual Reports
Most states require businesses to file annual reports or similar documents. In Massachusetts, LLCs must file an annual report with the Secretary of the Commonwealth. These reports typically confirm or update:
– Your business name
– Principal address
– Names of managers or members
– Other basic information
Name Change Procedures
If you later decide to change your business name, you’ll need to file formal amendments to your business registration. This typically involves:
– Filing articles of amendment with your state
– Updating your operating agreement
– Notifying the IRS and obtaining a new EIN if necessary
– Updating licenses, permits, and bank accounts
– Informing customers and updating marketing materials
Special Considerations for Artists and Professionals
Some entrepreneurs, particularly artists, consultants, or other professionals, struggle with whether to use their real name or create a business name.
Using Your Real Name
Using your personal name (like “Jane Smith Photography”) creates immediate authenticity and personal connection. This works well for:
– Consultants and service providers where personal reputation matters
– Artists, writers, and creative professionals
– Professionals where trust is paramount (doctors, lawyers, etc.)
Creating a Business Identity
Creating a separate business identity might be preferable if:
– You want to build a brand that could eventually operate without you
– You prefer to keep some separation between personal and professional life
– You plan to expand and potentially bring on partners
– Your legal name is difficult to spell or pronounce
Small Business Administration Resources
The U.S. Small Business Administration (SBA) offers valuable resources for naming and registering your business. Their website provides:
– State-specific information on business registration
– Guidance on business structures
– Information about required licenses and permits
– Resources for business planning
The SBA can help you understand the legal implications of your business name choice and guide you through the registration process in your state.
Practical Tips for Naming Success
As you work through the process of inventing your corporate name, keep these practical tips in mind:
Test Your Name
Before finalizing your decision:
– Say it out loud repeatedly
– Ask others to spell it after hearing it
– Consider cultural implications if operating internationally
– Check for unintended meanings or translations
Think Long-Term
Choose a name that can grow with your business:
– Avoid names that limit your geography (unless strategically intended)
– Consider future product or service expansions
– Ensure the name will remain appropriate as your business evolves
Protect Your Name
Once you’ve selected a name:
– Register relevant domain names (including common misspellings)
– Secure social media handles
– Consider trademark protection
– Monitor for potential infringement
Conclusion
Inventing your corporate name is both a creative and legal process. The name you choose will become the foundation of your brand identity and an important business asset. By carefully considering your options, checking availability, understanding legal requirements, and following proper registration procedures, you can select a name that serves your business well for years to come.
Remember that while the process may seem complex, taking the time to get your business name right from the beginning can save you significant headaches and expenses down the road. Your business name is often the first thing potential customers learn about you—make sure it makes the impression you want.