You’ve started your own business. You’ve done the market research, wrote a business plan, decided on a location, worked through the finances, and selected the perfect name. You think you are ready to open for business. But there is still one important step you need to take—register your business’s name.
Why is this important? Your business’s name is the face of your brand. It will appear on everything pertaining to your business: letterhead and cards, marketing and advertising materials, business formation documents, loans, and legal contracts and agreements.
Registering your business can make it a legal entity, providing your business protection, and preventing anyone else from operating under the same name. There are four ways to register your business name, and each serves a different purpose.
- Entity name
- Trademark
- Doing business as (DBA)
- Domain name
Read on for more information on each to determine which is best for your business.
Entity name
An entity name protects your business at the state level. Once registered, it is the legal name of your business. It will “own” the business bank accounts and assets, as well as serving as the name used on contracts and other documents. In most states, registering will keep other businesses from using your name and will not allow another business to operate under the same entity name.
Each state may have different rules about what entity name you can use. Some states require the name to reflect the type of business it represents. There are also rules regarding the use of company suffixes such as Inc., Co., LLC, and Corp.
In general, most states do not allow you to register a name that has already been registered to someone else.
Check with your state’s government for its specific rules and regulations.
Trademark
A trademark provides protection at the national level. It protects not only the name of your business, but also your business’s goods and services. A trademark prevents other businesses in the same or similar industry from using your business name.
But just as a trademark will protect your business’s name, so will it protect others. Businesses in each state are subject to trademark infringement lawsuits, which can be quite costly. Before deciding on a name for your business, products, or services offered, check them against the U.S. Patent and Trademark Office’s trademark database to ensure they are not in use by another company.
Doing business as or DBA
A business or sole proprietor is designated as “doing business as” if they are operating or intend to operate under a fictitious name, an assumed name, or a trade name, rather than using their legal name. If you decide to use “doing business as”, you may need to register with the state, county, or city where your business is located. If you are a sole proprietor using a fictitious name rather than your own name legal name, you are required to register as a DBA. For example, if your name is Jane Smith, and your business is called Happy Tails Dog Spa, you will need to register as a DBA.
You may want to register as a DBA even of you are not required to. While it does not provide legal protection, getting a DBA and a federal tax ID number (EIN) allows you to open a business bank account.
Keep in mind that multiple businesses can go by the same DBA in one state, so while you are less restricted in what you can choose, there is no protection. Trademark infringement laws still apply when doing business as a DBA, so check the federal trademark database.
Because DBA requirements vary by business structure as well as by state, county and municipality, check with your local government offices.
Domain name
Whether you are a small business with a storefront, a provider of goods or services, or another form of business, you may want an online presence. A website makes it easier for your customers or clients to find you, plus it’s an excellent way to protect your business’s brand.
The first step in creating your online presence is choosing a domain name. You will want something that is easy to remember and aligns with your business name and brand.
Next you need to choose a domain name registrar. There are a number of accredited registrar services available. Search the Internet Corporation for Assigned Names and Numbers (ICANN) database to find a registrar that works for you and offers the best pricing structure, privacy, and customer service.
Once you have purchased your domain name, you will need to renew your registration on a regular basis. But, once you register your domain name, no one else can use it as long as your business continues to own it.