How to Register a Business Name

Your business name is one of your most important assets, and once you've found the right one, you need to register it with the state. Here are the steps you’ll take to register and protect your business name.

How to register a business name: A step-by-step walk-through

1. Register your business with the state.

Many people choose to take advantage of the liability protections and tax benefits that come with a business structure. You can set up your business as a limited liability company (LLC), a partnership, or a corporation, but you must register with the state.

The state you live in and the type of entity you're forming dictate the paperwork needed to obtain an official business name. Your best bet is to check your secretary of state's website to see what you need to do and if any fees are required.

2. Apply for your EIN.

Once you've registered your business with the state, you must apply for an employer identification number (EIN). An EIN is a separate tax number for your business, and you can apply on the IRS' website.

You'll start the application by selecting your business entity. For instance, if you choose an LLC, you’ll provide the following information about your business:

• The legal business name.
• Number of members.
• The state where you're incorporated.
• Managing member information.
• The reason you're applying for an EIN.
• The date your entity began.

3. Secure your domain name.

Now that your business is legally set up, you'll want to secure your online domain name. If the business name is available but the domain is taken, you have a few options. You could choose another variation of your business name. For instance, Peloton's business name is Peloton Interactive Inc., but the domain name is onepeloton.com.

If you use GoDaddy, you can request that a domain broker contact the owner of your desired domain name and negotiate a deal for you to buy it. However, there is a fee for this service, and there's no guarantee GoDaddy will make contact with the owner.

You should also check whether your business name is available on the social media channels you plan to use. That way, you know they're available once you're ready to begin using them. This helps you create a unified brand identity across your website and various social media platforms.

4. Register a DBA.

Under certain circumstances, you may want to set up a DBA (doing business as) registration. Companies set up a DBA when the name they're doing business as differs from the legal business name.

You'll fill out the form to apply for a DBA in the state where your small business is located. Multiple companies can use the same DBA in a single state, so you have more leeway for the name you choose. However, confirm with your secretary of state or the division of corporations if this is possible. 

5. Consider applying for a trademark.

It's a good idea to take the extra step and apply for a federal trademark, which protects your business name at the national level. If you have a trademark, it prevents other companies from using your business name.

If someone does use your business's name, they're subject to trademark infringement laws. You can apply online at the U.S. Patent and Trademark Office (USPTO) to get started.

DBA vs. legal business name: What the difference means for your taxes and contracts

Your legal business name is the name registered with the state when you form your entity. It’s the name the IRS recognizes, and it appears on all of your official business documents, like tax records, contracts, and bank accounts.

In comparison, your DBA is a trade name you operate under publicly, but it has no independent legal standing. It doesn't change how you're taxed, and it doesn't protect you from liability.

For tax purposes, the IRS always identifies your business by its EIN, which is tied to your legal entity name, so your DBA is irrelevant when it comes to federal tax filings. The requirements can vary at the state level, so be sure to check with your state's department of revenue come tax season.

How to check if your business name is legally available

Every state maintains a free searchable online database of business names. You can search this database to determine whether there are any existing entities using the business name you want. However, this only covers your state and won’t tell you whether the name is being used elsewhere.

That’s why it’s also important to do a trademark search to look for exact and similar matches. A name that's confusingly similar to an existing trademark can still expose you to an infringement claim. It's also worth doing a general web search to see whether the name is associated with established businesses in your industry.

How to protect your business name with a federal trademark

A federal trademark gives you the strongest legal protection available for your business name. Here are the steps you’ll take to apply for a trademark:

1. Confirm eligibility. To be eligible for a trademark, a name must be distinctive and not too generic or descriptive. You can speak to an intellectual property attorney to learn more about trademark eligibility and rules.
2. File your application through TEAS. You’ll submit your application through the USPTO's Trademark Electronic Application System (TEAS). You'll choose your goods/services class, pay the filing fee, and provide a specimen showing the mark in use.
3. Respond to any office actions. The USPTO may issue a request for clarification or a legal objection during the review process and give you a set time frame to respond by.
4. Maintain your trademark. Federal trademarks aren't permanent by default. You'll need to file maintenance documents at the five-year mark and renew every 10 years to keep your trademark protection active.

What to do if someone else is already using the name you want

Here are some alternatives to consider if another company is already using your business name:

• Check the scope of their use. Trademark protection is tied to specific categories of goods and services. If the existing registration covers a completely different industry, you may be able to use the same name in your industry without conflict. However, you should consult a trademark attorney before proceeding.
• Consider modifying the name. A creative variation of the business name may be available and can become just as distinctive over time.
• Negotiate a purchase. If the name is registered but the business appears inactive, the owner may be willing to sell or transfer it. Reach out directly, or work with an attorney to facilitate the process.
• Check whether the trademark is actually enforceable. Trademarks can be challenged if the owner failed to maintain them properly or if they were registered fraudulently. An attorney can help you evaluate whether the existing mark is truly a barrier.
• Start fresh with a stronger name. Sometimes, the easiest solution is choosing a name you can trademark and own outright from Day 1.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation. 

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.

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