How to name a business: Legal requirements & helpful tips

There are three steps involved in naming a business, including coming up with a business name, ensuring the name is available and registering or reserving the name. In this step-by-step guide, we will break down each of these steps, offering tips on best practices, associated costs and free resources to help you along the way.

Editor’s Note: This article contains updated information from a previously published story.

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1. How to come up with a business name

There are several factors to consider when naming a business, including state naming guidelines. Here are some tips for brainstorming a business name.

Consider your business structure

Most states require specific additions to your name depending on the type of business you’re forming. For example, if you’re forming a limited liability company, most states require you to add “limited liability company,” “LLC,” “L.L.C.” or some other variation of this business structure’s signifier to your chosen name. Other required business structure endings may be “corp,” “inc” or “corporation” for a corporation.

Consider state naming guidelines

In addition to requiring a signifier of your business’s legal structure, most states also have formal naming guidelines you must adhere to when choosing your business name. These guidelines tell you what words are prohibited from use in your business name. You will almost always find these naming guidelines published on your state’s secretary of state website. If you do not adhere to such naming guidelines, your business name will be rejected when you try to register it with your business formation papers. 

For example, the Arkansas Secretary of State website offers name availability guidelines. In it, we learn that Arkansas businesses cannot use the words “bank,” “trust” or a combination of the two words in a business name without written consent by the Arkansas State Bank Department.

In addition, Arkansas business names cannot include the words “engineer,” “engineering” or a modification of these terms without a certificate of authorization or letter from the State Board of Licensure for Professional Engineers and Professional Surveyors. Other words that are prohibited outright for use in Arkansas business names include “Razorback(s)” or “Arkansas Razorback(s).”

Use a business name generator

Now that you know your state’s naming guidelines, you have the discernment necessary to choose an appropriate name. An easy way to begin brainstorming appropriate names includes using a business name generator.

Many business formation companies like Bizee offer a free business name generator. To use these tools, simply input words related to your business’s products or services, and the name generator will suggest names related to your line of business.

Tip: When we tested Bizee’s name generator, we found that results were best when we input only one term at a time. 

2. How to check if a business name is taken

Once you’ve brainstormed an acceptable name for your business, you must ensure it is not already in use. Begin by performing this search on a state and federal level. Then, to ensure you can best use the name to further your business’s mission, search online to find out if it is available for use in your digital marketing efforts.

State search

If your name is already used by a business in your state, you must settle on another name. To learn whether the name is taken in your state, most states offer business entity search tools on their secretary of state websites. To help you locate your state’s business entity search tool, Northwest Registered Agent provides a state resource library where you can search your state to find out where to perform your name search.

However, what we particularly liked about Bizee’s free name generator tool is that once you land on a name you want, you can simply click on it, then follow the prompts to learn if your name is available within your state. ZenBusiness also offers a free name search tool by state.

If your desired name appears in state-specific name search results, you cannot use the name for your business. However, most states offer a guide to “distinguish” (or differentiate) your name from an already existing one. Check out your state’s name availability guidelines on your secretary of state’s website.

For example, Arkansas’ naming guidelines point out that a name can be distinguished from an existing one by adding a geographic location or other keywords. However, it cannot be distinguished by adding or removing spaces, punctuation, symbols, articles of speech, contractions or numbers.

Trademark search

In addition to searching your state to ensure your chosen name is available for use, you must ensure it is not trademarked and protected from infringement on a national scale. To do so, visit the United States Patent and Trademark Office’s search trademark database. If your chosen name appears in this database, it is not available for your use, and you must choose another name.

Search marketing platforms

Just because a name is available on a state and federal level does not mean it is not being used by another company. For example, another company may have registered the name as a fictitious or doing business as (DBA) name. If so, that same business may have also claimed valuable marketing opportunities for that name, such as its domain name and social media handle forms.

Use a domain name search tool to ensure the domain version of your chosen name is available. Also, search the social media platforms you plan to use to market your brand to ensure your name’s social media handles are not already claimed.

3. How to register a business name

To register your business name, you will need to file your company formation paperwork with your state. Northwest Registered Agent offers a resource that allows you to search by state and locate the appropriate forms to register your business in your state.

However, many businesses come up with a name but need more time to prepare before filing business formation paperwork with their states. In this case, reserving the business name on a state level is advisable until you’re ready to form your company. Reserving a business name with your state generally costs between $10 and $50, depending on the state, and protects your name from use for between 60 and 180 days. Some states offer the ability to renew your name reservation after this time period has expired.

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ZenBusiness

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Via ZenBusiness’ website

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Lowest published package price

$199

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LegalZoom

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$249

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Northwest Registered Agent

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Via Northwest’s website

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Lowest published package price

$39

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