Your business name is one of your most important assets, and once you've found the right one, you want to protect it by registering it with the state. Here are six steps you’ll take to register your business name.
Steps for registering your business name
1. Find out if you're required to register your business.
You may not need to register your business depending on your location and business structure. For example, if you're a sole proprietor conducting business using your legal name, you're not required to register your business anywhere.
However, you will lose valuable legal protections as a sole proprietor. If you're sued or unable to pay business debts, creditors can seize your personal assets to recoup their losses.
2. Register your business with the state.
Many people choose to take advantage of the liability protections and tax benefits that come from choosing a business structure. You can set up your business as a limited liability company (LLC), a partnership, or a corporation, and you must register with the state.
The state you live in and the type of entity you're forming dictate the paperwork needed to get started. Your best bet is to check your secretary of state's website to see what you need to do and if any fees are required.
3. Apply for your EIN.
Once you've registered your business with the state, you must apply for an employer identification number (EIN). An EIN is a separate tax number for your business, and you can apply on the IRS' website.
You'll start the application by selecting your business entity. For instance, if you choose an LLC, you’ll provide the following information about your business:
- Legal business name.
- Number of members.
- The state where you're incorporated.
- Managing member information.
- The reason you're applying for an EIN.
- The date your entity began.
Many people choose to take advantage of the liability protections and tax benefits that come from choosing a business structure.
4. Secure your domain name.
Now that your business is legally set up, you'll want to secure your online domain name. If the business name is available but the domain is taken, you have a few options. You could choose another variation of your business name. For instance, Peloton's business name is Peloton Interactive LLC. But the domain name is onepeloton.com.
If you use GoDaddy, you can request that a domain broker contact the owner of your desired domain name and negotiate a deal for you to buy it. However, there is a fee for this service, and there's no guarantee GoDaddy will make contact with the owner.
You should also check whether your business name is available on the social media channels you plan to use. That way, you know they're available once you're ready to begin using them. This helps you create a unified brand identity across your website and various social media platforms.
5. Register a DBA.
Under certain circumstances, you may want to set up a DBA (doing business as) registration. Companies set up a DBA when the name they're doing business as differs from the legal business name.
You'll fill out the form to apply for a DBA in the state where your small business is located. Multiple companies can use the same DBA in a single state, so you have more leeway for the name you choose.
6. Consider applying for a trademark.
It's a good idea to take the extra step and apply for a federal trademark. A trademark protects your business name at the national level, not just the state level. If you have a trademark, this prevents other companies from using your business name.
If someone does use your business's name, they're subject to trademark infringement laws. You can apply online at the U. S. Patent and Trademark Office (USPTO) to get started.
Tips to avoid legal issues with your business name
Trademark infringement is one of the most common legal challenges many businesses face. It occurs when you choose a business name that's the same as or similar in sound, appearance, or meaning as a registered trademark.
So before you select a business name, run it through the USPTO. It's also a good idea to search your state's business registry to ensure there are no existing businesses with the same name.
You should avoid choosing a business name that's too similar to a well-established company. Not only could it lead to legal disputes, but it could cause confusion among customers and potentially hurt your business's credibility.
If you're unsure whether a business name is available, consulting an experienced trademark attorney is recommended. They can explain whether there are any potential legal risks before you invest a lot of money in launching your business.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.
