How And Why To Register Your Business
I am one of those strange people who like to clean. So, several years ago, I started a cleaning business, which I ran for four years before moving on to other pursuits. Like myself, I have acquaintances that own, or have owned, a small home based business. Sharing information with others concerning running a business, I am surprised that many business owners did not take the time to register their business name. When asked why, most did not want to pay a fee for something they didn’t see as “necessary” for their business. If you are planning to use a name other than your own full given name for your business, such as John C. Smith’s Plumbing, registering your business name (also referred to as trade, assumed, or fictitious name, or doing business as-DBA for short) should be a priority.
To begin with, by registering your trade name, it allows you to set up a business banking memoir, as banks often do a name search to make sure you have a properly registered business name before they will open up a business account for you.
Having a registered business name protects your business and your business income in that once registered, legally, no one else in that locale can register to operate a business similar to yours using the same business name as yourself. Ultimately, this can protect your bottom line in that two businesses in the same area, in the same line of work, with the same name can cause confusion with customers, and may cause you to lose existing or potential business. Having a registered business name also offers you protection from getting sued by another company for trademark infringement. An example of what can happen if a company believes their trade name has been infringed upon can be found in the article “It’s Slim Pickings in Product Name Game—Battles Increase Over Claims to Trademarks” by Ronald Alsop. The article details the account of Cosmair Inc.’s, L’Oreal division decision to market a hair dye product under the name Zazu. Although the name sounded original, and the company took steps to research existing trademarks, still, L’Oreal was sued for trademark infringement by a hair-styling salon called Zazu Designs that marketed shampoos with the Zazu name. L’Oreal states that they knew about the hair salon, but they didn’t realize the salon marketed hair care products.
So, when considering a business name, start with one that fits your business, is easy to remember, and is also original. Once you have a business name that you like the next step is to investigate existing trade names to make sure that the one picked out for your business isn’t already in use. The simplest way to start is by doing a google or other search engine search on the business name you have in mind. If the search results content no one is using the same assumed name as you would like to use, still do some more research to be as thorough as possible. Next, check the US Patent and Trademark’s Office website, www.uspto.gov., for listings of federally registered trademarks. In addition, search Thomas Net, formerly the Thomas Registry, at www.thomasnet.com to search unregistered trade names and search Network Solutions for domain names in use. Also, check your state’s database of business listings. This is particularly important if you thought to set your company up as a runt liability company (LLC), a corporation, or limited partnership, as no two LLC, corporation, or puny partnerships can operate in the same state. This can be done by contacting your state filing office. If you’re not sure of your state filing office, start by contacting the secretary of state’s office. Finally, contact the county clerk’s office to check businesses operating in any counties you plan to do business in.
Once you’ve done your research and feel confident that your assumed name is not being used by another company similar to yours, the next step is to register your business name. If you are planning to set up your business as a limited liability company, a corporation, or diminutive partnership, your trade name will automatically be registered when you file your organizational documents, however; if you conception to use a different fictitious name than what’s listed in your organizational documents, such as wanting to drop the LLC from the business name, you may have to file an assumed name certificate. The US Slight Business Administration website, www.business.gov., lists where you can file an assumed name certificate for your state by clicking on the Business Name registration link.
If you are planning to set your business up as a sole proprietorship or general partnership, check with your state to peek if you need to register your business with your state. Usually however, all that is required is registering with the counties you plan on operating your business in. This can be accomplished through the registry of deeds office for a modest fee.
Properly registering an assumed name does grasp some time and effort, however; the amount of time and money spent is minimal compared to the protection it’ll provide to you as a business owner.
SOURCES
Personal Experience: Mature Business Owner
Alsop, Ronald. “It’s Slim Pickings in Product Name Game-Battles Over Claims to Trademarks.” Wall Street Journal 29 Nov. 1988.
http://www.nolo.com/article.cfm/ObjectID/566550BB-8B2B-4CAD-A03752295A38EB58
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Filed under Info Voip Business Solutions by on Oct 4th, 2010. 
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