The Castleman Law Firm
Q: I'm trying to come up with a name for my new business and am wondering if there are any rules about business names I should be aware of.
A: The only real rule is that you can't use a name that is in use by another business, or is so similar to the name used by another business that it may be confusing to the general public. Any business name that is different than your own personal name is considered a fictitious business name and must be registered in the counties in which you plan to do business. For example, if your name is John Doe and you want to name your business John Doe, you do not need to register the name. However, if you want to call your business John's or Doe's or John Doe Consulting Services, you would need to register with the county.
Your county recorder can provide you with the necessary Fictitious Business Name registration form. If your new company is a corporation, the name must be registered with the Secretary of State's office.
There are two reasons for registration of fictitious and corporate names. First, registrations allow consumers to determine the real owners/directors of the companies with which they do business, and provides them with the necessary information to file a lawsuit against the owners/directors in the vent they feel they have a claim. Secondly, registration prevents a business from using a name that is the same or similar to the name of another business.
Q: Do you have any advice about selecting a name for a new business?
A: The name of a business should describe something - preferably something unique about your business. You should emphasize what you're selling or what makes your business unique. I usually advise clients to avoid names beginning with "a" or"z" or worse yet "aaaaaa" or "zzzzzz", in order to be listed first or last in the telephone directory. Your business name should not be too cute, contain words that may become dated or be an abbreviation.
An additional consideration is to determine whether your name will be misunderstood by those who speak a language other than English. The marketing world is filled with tales of English names or slogans that don't translate well into other languages.
Finally, you should be able to grow with your name. Don't use a name which implies a limitation in your size, capability or geographical areas of operation, unless you intend to keep those limitations forever. Remember, your name will be with you a long time and it is difficult and expensive to change names four or five years down the road. And, of course, the name must be available for you to use.
For corporations, the name-availability unit of the Secretary of State's office in Sacramento will check on the availability of a name and reserve that name for you for 60 days.
For sole-proprietorships or partnerships, you can check name availability at your county recorder's office.