Your business’ name is one of your most important advertising tools. If you have recently started or are thinking of starting a business, you likely already know how important the name of your business is. But more than just creating a good first impression, a name must satisfy certain legal requirements.
There are different issues involved at the various stages of choosing a name, registering a name, and defending a name. When choosing a name, check to see if the state in which you will do business restricts the use of certain words in trade names. In addition to complying with any word restrictions your state may impose, you should then determine whether the name you have chosen is available for use. Many states have an online name availability search.
After you have found an available name that is both unique and complies with all the relevant state rules, you must file the name with the appropriate entity.
The correct location to file will often depend on the legal structure of your business. While every state has different rules, in Michigan sole proprietorships and co-partnerships must file their business name with the county clerk in the counties where the business is located (this includes every county in which the company transacts business). After a name is properly filed, the clerk will then check if the filed name meets all relevant state requirements, including the appropriate standard of uniqueness. The precise standard will vary from state to state. In Michigan, the standard is whether the business name is “the same or so similar to a name already on file with the county as to cause confusion or deception. “
The process is slightly different for limited liability companies, corporations, and limited partnerships, which must file with the Michigan Department of Licensing and Regulatory Affairs (LARA) rather than the county clerk. Similarly, LARA will determine whether the business name contains any restricted words and is “distinguishable on the records of the administrator from other active names.” A name is distinguishable if it has a different sequence of letters or numbers from other names.
If you are not located in Michigan, be sure to research the relevant rules for your state. While states often have similar processes, it is imperative to know the precise rules for your state. These rules are often available online. If you are unsure about your state’s rules for filing a name, contact an attorney who can help you comply with the necessary procedure.
It is also important to remember that successfully filing your business name is not the end of the process. Once you have the perfect name, it is your responsibility to protect it. If you see another business using your name, contact an attorney to take action.