Naming your new startup business is the first step on your journey. It takes time and thought and probably a few hours of brainstorming for the perfect name. Numerous books and articles have been written about naming a business, but in the end, it should be something creative and memorable and reflect your and your business’s passion.
Why is a business name important?
Your business name reflects what your company is about. It differentiates you from your competitors and is the cornerstone of your brand identity. Your business name is how you are mentioned, spoken of, and written about across all media outlets. All of these factors culminate in customer loyalty.
Tips for naming your business.
According to Forbes.com, “Finding the right name for your startup can have a significant impact on your success. The wrong name can do worse than fail to connect with customers; it can actually result in insurmountable business and legal hurdles. In contrast, a clear, powerful name for your startup business can be extremely helpful in your marketing and branding efforts.”
“KISS” Keep it Simple Silly. Simple names are easier to remember.
- Memorable and appealing. Not too long, not too short. Something easy to say looks good as a logo on your website and clicks with your target audience.
- Think Ahead. If you name your business Mary’s Fruit Juice LLC and then branch out to fruit snacks, the name may need to be changed to encompass all the products and services.
- Engage your circle of friends. Create 5 or 10 names and then run them by friends, family members, and trusted colleagues. Get feedback from your target audience as well. And make sure that the name doesn’t have any negative connotations. ( com)
- Domain name. Stick with .com. Customers tend to associate a .com name with a more established business. Undoubtedly, someone will already own your desired .com name, but many domain owners are willing to sell their name for the right price. ( com)
Should I use an acronym for a business name?
An acronym can be fun and memorable, but it can also be confusing if it is too common. The best example is IKEA. Did you know? IKEA is named after the initials of founder Ingvar Kamprad: Elmtaryd, the farm on which he grew up, and Agunnaryd, the nearby village.
Protecting your business name.
According to sba.gov, once you settle on a name you like, you need to protect it. There are four different ways to register your business name. Each way serves a different purpose, and some may be legally required depending on your business structure and location.
- Entity name protects you at a state level
- Trademark protects you at a federal level
- Doing business as (DBA) doesn’t give legal protection, but it might be legally required
- Domain name protects your business website address
Each of these name registrations is legally independent. Most small businesses try to use the same name for each kind of registration, but you’re generally not required to.
Four ways to register your name.
Entity name
An entity name can protect the name of your business at a state level. Depending on your business structure and location, the state may require you to register a legal entity name.
Your entity name is how the state identifies your business. Each state may have different rules about what your entity name can be and the usage of company suffixes. Most states don’t allow you to register a name that’s already been registered by someone else, and some states require your entity name to reflect the kind of business it represents.
In most cases, your entity name registration protects your business and prevents anyone else in the state from operating under the same entity name. However, there are exceptions pertaining to state and business structure. Check with your state for rules about how to register your business name.
Trademark
A trademark can protect the name of your business, goods, and services at a national level. Trademarks prevent others in the same (or similar) industry in the United States from using your trademarked names.
For example, if you were an electronics company and wanted to call your business Springfield Electronic Accessories and one of your products Screen Cover 5000, trademarking those names would prevent other electronics businesses or similar products from using those same names.
Businesses in every state are subject to trademark infringement lawsuits, which can prove costly. That’s why you should check your prospective business, product, and service names against the official trademark database maintained by the United States Patent and Trademark Office.
Doing business as (DBA) name
You might need to register your DBA — also known as a trade name, fictitious name, or assumed name — with the state, county, or city where your business is located. Registering your DBA name doesn’t provide legal protection by itself, but most states require you to register your DBA if you use one. Some business structures require you to use a DBA.
Even if you’re not required to register for a DBA, you might want to anyway. A DBA lets you conduct business under an identity different from your own personal name or your formal business entity name. As an added bonus, getting a DBA and federal tax ID number (EIN) allows you to open a business bank account.
Multiple businesses can go by the same DBA in one state, so you’re less restricted in what you can choose. There’s also more leeway in the clarity of business function. For example, a small business owner could use Springfield Electronic Accessories for their entity name but use TechBuddy for their DBA. Just remember that trademark infringement laws will still apply.
Determine your DBA requirements based on your specific location. Requirements vary by business structure and state, county, and municipality, so check with local government offices and websites.
Domain name
If you want your business to have an online presence, start by registering a domain name—also known as your website address or URL. Once you register your domain name, no one else can use it for as long as you own it. This is an excellent way to protect your brand presence online.
If someone else has already registered the domain you wanted to use, that’s okay. Your domain name doesn’t actually need to be the same as your legal business name, trademark, or DBA. For example, Springfield Electronic Accessories could register the domain name techbuddyspringfield.com.
You’ll register your domain name through a registrar service. Consult a directory of accredited registrars to determine which ones are safe to use, and then pick one that offers you the best combination of price and customer service. You’ll need to renew your domain registration on a regular basis.
Accumera is ready to create your startup business!
Accumera LLC provides accurate, expeditious, and personal formation services in all US states and DC, beginning with name availability searches. Whether you’re looking for a Corporation, PC, LLC, PLLC, or Not-For-Profit company, we are here to help. Contact us to begin your journey as a startup business! We will be with you every step of the way.
