3 Steps on How to Register a Business Name

Registering a business name is a crucial step that is often overlooked. However, this process is essential to your new business for a number of reasons.

Naming your company is not only a practical part of starting your business journey but is also symbolic. What started out as a business idea has become a business reality.

But, what is involved in this process? We will cover it all here: from registering the business name to checking on availability and searching out domains to completing the search for federal trademarks.

We’ll also weigh in on your business structure and provide you with ample information regarding the forms and paperwork you will need in order to register. If you are left with any questions, please get in touch with our California business attorneys & corporate lawyers at Nakase Wade. Learn more on the 10 Steps on How to Start a Business.

Douglas Wade, Attorney

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Step 1: Select A Unique Business Name

Before you register a business name, you’ll want to ensure that there are no other companies in the same state that have already used or reserved the name. This type of overlap is common, so if this happens, don’t worry. We do recommend having a collection of “backup names” written down somewhere so that if you do discover someone using your name, you will not lose too much time.

How can you find this information out? You’ll need to complete a few comprehensive searches to see if the odds are in your favor.

Search Out Your Name

First, conduct what is known as the business entity search, and it can be completed on the website of the California State Secretary. This is important; if you file for chosen a name that has already been reserved, your filing can be denied. So, it is best to have this information ahead of time.

If your name is taken, simply find another naming option that fits your business. Don’t get frustrated; this is a normal part of the process. It is the way in which you deal with this type of adversity and how flexible you are that defines the pursuit of your goals.

How to Search

The requirements for your search differ based on your unique requirements. The rules state that an original name that is readily available is a necessity for:

Businesses structured as Limited Liability Corporations (LLCs) and other corporations that are filing for a name
Existing companies, informal or formal, that are filing for a ‘Doing Business As’ or DBA

Check-In with Your State

What else is important to be aware of as you register a business name? There are some states in which this type of search is simply not required. This process, then, is decided upon and completed on a state-to-state basis. It is best to find this out before you start this process, and the information should be readily available online or if you contact state offices and officials.

Search for your Domain

Next, check whether the proposed name of your business is available in terms of your projected internet presence. Your company’s domain name and URL are an important piece of the puzzle since all businesses now are, at least in part, run online.

This means a significant amount of outreach can be made to customers via the web, not to mention future profits.

You want your domain name to be the same as the business name, or as close as you can get it to be, for the sake of synchronicity. It’s a wise move to check if your specific web address is available and then buy it in order to secure it.

Checking out your options is free, and there are various hosting companies to choose from, many with deals and incentives. Options include Go Daddy, Domain.com, HostGator, Bluehost, and many others.

Your domain name does not necessarily need to mirror your company name. Many businesses use abbreviations or catchy phrases that are a play on your full, official name. Many of the tips we included in the prior section about choosing your name hold true here.

Try this exercise: make a quick list of your favorite or most familiar businesses. Now, check out their domain names. This might inspire you!

Trademark your Name

At this point, we also suggest you conduct a rapid search of the United States Trademark System. This helpful tool reveals to prospective business owners whether their name has already been trademarked.

Check the Cost

If you are lucky and no one has reserved your specific business label, we suggest you find out what the cost would be to trademark your new company. Why should you check on the cost first? Sometimes, it doesn’t make sense for a new company that is just starting out to pay the fees. As we are sure you know, there are a lot of costs to navigate when starting a new business, not to mention registering your business. We’ll leave this decision up to you because it is different for every company and depends on factors such as how much capital you have saved.

Even if you do not apply to have your name trademarked now, you can do this for your business later in the process when you can sensibly afford it. We do not recommend you skip this search because it is always beneficial to know whether your business name is taken or not.

Search the Web

Regardless of how original and groundbreaking your name is, we strongly suggest that you run a few general internet searches of your business name.

Use the entire phrase, and also try breaking it up if there are multiple words. Utilize the obvious choices here: Google, Yahoo, and the less obvious, such as Baidu and DuckDuckGo.

Benefits of Web Search

A quick tally of your online results will tell you:

What other companies are using similar phrases and terms
What sort of industries these terms are consistent with
Who are the leaders of the industry; for example, are they small companies? Large? Globally recognizable or local?

These measures fall under the umbrella of ‘knowing your competition’ as well as ‘doing the research.’ No, we are not suggesting you join a sports team or go back to school, but this type of quick, easy investigative reporting is helpful as you register your name. Think about it: isn’t it valuable to know what your prospective customers will find when they search out your business name?

Utilize Social Media

Regardless of your experience with social media, one thing is obvious: successful companies have learned how to use social media platforms to their advantage. For companies new and old, small and large, Sites like Twitter and Instagram have become indispensable for a variety of reasons.

Social Media Uses

These widely-used sites can help you with:

Building your client base
Showing customers your products
Establishing the voice and identity of your business
Reaching a demographic that might miss your pitch otherwise

Checking Socials

Simply enter your business name and possible phrases you use in, and simply see what pops up. From Facebook to Nextdoor, there are a wealth of sites out there that you will come to see as tools. For now, you are just mining for results. Who are the rival companies who have an influential presence or following? How can you tailor your business plans and philosophy to keep up with these companies?

Perhaps you will find that with a few tweaks to your name or platform, you are in a league of your own: the less competition, and the more of a niche you can create, the better.

Stay Flexible

Remember what we said at the top about being flexible: if the research shows you that there are many names out there similar to yours, you may need to adjust it in order to make your company more unique. A bold online presence will attract new clients and customers!

Part 2: Select A Business Structure

Let’s get into the nuts and bolts of how to apply your name to your business. One of the critical aspects of registering a business name is selecting the optimal business structure. The ideal structure will provide you with the best chance for success.

Be Clear About Your Goals

Be honest with yourself, your employees, and your investors about the current potential of your company and your future goals. This will help you zero in on the absolute best configuration for your company. Different structures come with different advantages, drawbacks, and rules and regulations.

The Importance of Structure

Whether your structure is informal or more formal, the important thing to remember is that structure directly impacts and relates to:

The set-up of your business overall
The manner in which your company operates
The way in which your entity is taxed (and, this may impact your personal tax filings as well)

LLCs

A company with limited liability, known to most as an LLC, is the most clear-cut of these structures in terms of its simplicity. It is also a very popular structure and one you may have already decided on. LLCs are able to provide protection to owners in case of legal actions made against them, such as a lawsuit. Under an LLC, personal assets are protected, and this can be very advantageous if this format works for your business.

LLC Requirements

The name of your company has to include the term “limited liability” or other commonly used abbreviations, such as LLC.
Your new name is not allowed to utilize words that might make some think it is or has to do with an agency of the government (For example, a term such as the State Department would not be allowed to be used)
There are a number of words that are considered ‘restricted’ (for example, terms such as Attorney, College, or University). While you may be able to use these words in your name, you must check to see if additional paperwork or forms are required.

A simple online search of your home state and its naming regulations for LLCs will shine some light on this. Most names that are selected pass all these rules easily.

Corporations

Are lawful entities recognized as separate from the company’s owners
Have a simple organizational structure
It consists of shareholders, directors, officers, and employees
Can be recognized as a “C” or an “S” corp

Corporations vs. C corps

Curious about the contrasting attributes of S corps and C corps? The most sizeable difference between these different corporations is tax policy. C corporations pay taxes on their company incomes as well as on the income of employees and owners.

S corps do not pay taxes in this manner, but the owner or owners must claim the profits of the company as their own personal income.

Corporation Requirements

Just like LLCs, the name you decide on for your corporation—whether an S Corp or C corp—must abide by a few specific rules:

The terms’ limited’ as well as ‘company,’ and additionally ‘corporation’ and ‘incorporated’ have to be included. However, you can also use abbreviations in your name to include these words.
The business label you have carefully chosen has to be unique from all other business names in your home state
Including words that might muddy the waters between your business and government agencies (for example, the FBI or the CIA) is absolutely not allowed

Sole Proprietorships

This type of structure is comparable to the LLC structure in its simplicity and consists of a casual type of organization. While sole proprietorships do not provide protection of personal assets, which many see as a drawback, you also needn’t file with your home state. So, there are fewer hoops to leap through.

This is also where the term DBA comes into play because, as the owner of the business, you must run your company under your own surname. However, if you have your heart set on a different business name, you will need to attempt to receive a DBA by filing for one (DBA simply means Doing or Conducting Business As).

There will be additional rules within your state, and if you have questions about our policies here in California, contact California business lawyers & corporate lawyers at Nakase and Wade. We are here to help.

General Partnerships

If you have already decided that a general partnership is a good fit for you and are on your way to registering a business name, then you already are aware that the main difference between sole proprietorships and general partnerships is that partnerships include more than two people, or only two.

General partnerships are also informal in terms of their structure, and asset protection is not provided to owners. Just like sole proprietorships, the name of a general partnership must utilize the last name or names of the owners/partners. Would you like to use an alternative name? You know what is coming—it is DBA time.

Again, all of this is state-dependent, so California’s rules and regulations concerning these partnerships and others will be different than those in other states.

Structure before Name

Make sure to finalize your company structure before you move on to the process of registering a business name. This is because, as you have seen here, different structures come with quite different rules when it comes to naming your company. For more information, visit the Small Business Administration’s on choosing a business structure.

Step 3: Register the Business Name

You’ve done the research, and your original name is going to stand the test of time. You’ve also set your sights on a structure that will not only work well at the start but will encourage your business to grow. The California Secretary of State has an online portal for registering business name.

Reserve your Name

While it is true that filing for your unique name reservation may not be required, especially in your state, there are some key benefits.

One scenario that might lead you to reserve your chosen label is this: say your identity what you consider the perfect name, but are not yet ready to form a company? You can reserve the name with your state, and it will be waiting for you as you get everything else in order.

Name Reservations by State

It does not matter whether you are filing a DBA or opening a brand-new company under your own name; most states do not require this reservation. However, notice that we said “most”—in this case, and in all cases that have to do with your new business, it is best to be prudent and check in with your state.

For example, in California, this name reservation is necessary. So, make sure to make a note of that.

Form an LLC

Before you register your business name, form your limited liability corporation. What are the five pieces of the LLC process?

Choose a name (Ideally, you’ve already achieved this!)
Select your Registered Agent
File your Certificate of Organization
Devise your Operating Agreement
Register for an EIN with the IRS

Create a Corporation

If this is the structure you have landed on, you can form a corporation before or after you file for your registered name in your state. What are the steps?

-Assign a name to your corporation (assuming you have not found one yet, scroll back up for our helpful hints!)

Select your Registered Agent
Select Initial Directors, decide on a Share Structure
File the Documents of Formation
Secure an EIN from the IRS Corporation (If you’ve gotten this far, you should already be set!)

File for a DBA

A DBA lets your new business conduct itself under a different name than the legal name attributed to it. Why do some people feel strongly that they need a DBA?

It can be useful in terms of establishing your brand, and it also allows owners to change their business name without the need to amend the first, original filing. Therefore, it cuts out some of the red tape and allows you to get to work more quickly.

DBAs and Structure

The process of filing for a DBA can and does change along with the structure that you choose. For example, in certain states, the DBA process for an LLC is unique to the process that is required for a sole proprietorship.

Sometimes overlooked, DBAs can be a helpful tool for small businesses. As you move forward in the process of registering a business name, consider this option. If that is, you think it will be useful to you.

Amend your Name

Mistakes happen, and sometimes names need to be changed at some point. Some companies even change names multiple times after finding themselves in legal conflicts with similarly named companies.

If you do need to alter the business name you have filed with your state, there are a few things you have to do.

File the correct Amendment Certificate from your state
Make sure to include the filing fee that your state requires

Commonly Asked Questions About Registering a Name

What does the process of legally naming my business consist of?

In short, you will want to create your company, assign it the desired name, reserve it, register it, possibly trademark it, and make sure your company is legally structured and that all forms have been submitted. Remember—check with your state of residence (or wherever you are going to run the company) because policies change from state to state.

When is the business name I’ve chosen considered “official?”

When you have created a company and filed with your state and then reserved and registered your name, it is yours to keep.

What is the term “legal name” when attributed to a business? Why do people use that phrase?

This phrase is simply the entity’s name as stated on the documents of formation. When you file with the state you choose, this is the name you will choose. This name can only be changed with an amendment and DBA.

When is a “Doing Business As” even used? I’ve never heard of it.

That’s surprising because it is quite common! Any company can make a choice to use a DBA, and different business owners choose to do this for varied reasons. If you file, however, you do not change the legal name of the business.

Can you identify the initial step in creating a company?

Generally, it proceeds like this:

Exciting idea
Solid, well-researched plan
Catchy, informative, well-researched name
Structure that fits
And go from there!

How much will I have to pay in order to register my company?

We would love to provide you with a specific amount, but this number is dependent upon each company’s different needs, as well as the number of filings you need to do, as well as the state you are in. Much of this information is readily available, though, and you can get in touch with us if you have specific questions about registering a company in California.

Who do I make the check out to? Whom do I pay?

Payment occurs when you file your respective forms and paperwork. Much of this can be done online now, and therefore, many small business owners are able to pay and get started remotely; but you still might need to make a few physical appointments.

Does “LLC” need to be included in my company name? What if I have the perfect name without “LLC?”

This is an easy one: if you formed an LLC, the abbreviation needs to be in there. But it can be abbreviated. We think it sounds pretty cool. For example: have you heard of the new drink, Surf-Ade LLC?

But what if I don’t renew my business name?

If you forgot, then, unfortunately, someone else will be able to take your name. If you did not renew your initial reservation, then you might be out of luck. There is a lesson here: renew your name if you want to keep it!

Is it free to register a small business?

Like most things in this world, you will need to pay for it. Filing fees depend on the state you are in and the type of business you are setting out to run.

We hope this was helpful and informative and wish you all the luck in the world on your quest to register your business and eventually start a successful company. Feel free to contact Nakase Wade with any questions about naming your business and registering the business name correctly.

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