Determining the best way to register a clientele name will take into consideration respective factors, such as the business structure, the geographic area in which the company will operate, and the extent of security needed .
How to Register a Business Name
The three ways a occupation may register a name are :
- Form a business entity, such as a corporation or limited liability company (LLC).
- Register the business name as an assumed name or DBA (“doing business as”).
- Register the business name as a federal trademark.
not all businesses can use all three of these methods, and some may use more than one.
Reading: 3 Ways to Register a Business Name
The choices may vary depending upon whether the business is structured as a sole proprietorship, some form of partnership, an LLC, or a corporation.
To illustrate the possibilities, we will explore the versatile options of a fictional clientele. In our exemplar, Robert Hansen opens a residential home rental occupation after buying one house for this purpose. He begins by operating as a exclusive proprietorship and uses the name “ Robert Hansen, Property Rentals ” for the business. In time, Robert acquires more properties and decides he wants a new diagnose for his business .
Forming a Business Entity
One option for Robert is to create a pot or an LLC. To do so, he must file certain registration documents with the appropriate state agency. This requires the business to choose its legal diagnose .
State laws prohibit a company from using a list that is already being used by another company. indeed, depart of selecting a mention involves checking the department of state ‘s records to be certain another company is not already using the desired name .
Robert wants to use the name “ Sunrise Properties ” and determines that identify is available. He might file articles of internalization under the name “ Sunrise Properties, Inc. ” Or, he might file articles of organization under the name “ Sunrise Properties, LLC. ” This would prevent other companies from using the name “ Sunrise Properties ” in his country .
Creating a corporation or LLC lone provides protection in the express of registration. If Robert decides to expand into another state, he may be able to register his pot in the new state, providing the name is not already registered there .
Registering an Assumed Name
Any sole proprietorship, partnership, corporation, or LLC that does clientele under a name other than its own, must register the early name as an simulate diagnose .
This is much done with a county agency, but may be with a state representation in some states. This is called a fabricated name in some locations and is besides normally referred to as a “ doing business as ” or “ assumed name ” name.
If Robert wants to continue operational as a exclusive proprietorship, he may be able to register the name “ Sunrise Properties ” as an bear mention. Robert could then use the name “ Sunrise Properties. ”
Anyone checking the official records would be able to see that his business is actually “ Robert Hansen assumed name Sunrise Properties. ”
Assumed name registration is not limited to sole proprietorships. Let ‘s suppose Robert forms Sunrise Properties, Inc., and decides to start a yard maintenance business that uses a different name. In this lawsuit, Sunrise Properties, Inc., might register “ Sunrise Lawn Services ” as an simulate name. This would then be “ Sunrise Properties, Inc., assumed name Sunrise Lawn Services. ”
alternatively of forming a pot or LLC, let ‘s presuppose Robert takes on Laura Deever as his spouse. Their partnership might register “ Sunrise Properties ” as their assumed name. Or, for another exemplar, they might combine their surnames and register “ Han-Dee Properties. ”
Assumed name registration normally only protects the name in the county where it is registered. If the business plans to operate in more than one county, registration would be required in each county .
Trademark and Trade Name Registration
Trademark, trade list, or overhaul mark protection may be available on a statewide footing. The requirements for registration deviate from state-to-state. such registration must be done in each state where the business operates .
A more building complex, and normally more expensive, way of registering a occupation name is by registering the name as a hallmark with the United States Patent and Trademark Office.
Read more: How to Apply for FAFSA – College Ave
This provides countrywide protective covering of a occupation appoint. Federal trademark registration requires a research to be indisputable a similar name has n’t already been trademarked, and there are detail requirements and limitations relating to the ability to trademark a business name .
Determining the best way, or ways, to protect your business mention will take into account the direction you decide to structure your company, the character of goods or services you offer, and the geographic roll of your business operations .
For many small companies operating in only one state, organizing as a corporation or LLC may provide sufficient protection .