What's in a Name?

     Ask any newly expecting parents how difficult it was to agree on a name for the child. Mommy thinks one thing; Daddy another. Will it be a boy or a girl? That will surely make a difference, and then even if a name is agreed on will that child actually look like a Bobby, or more like a Peter? Is she a Cindy, or a Marsha? The baby's name must transcend all confusion and will certainly shape the character of the person.
     The same is true in the business world. The name of the business will determine what kind of market it will attract. The more catchy a name, the easier people will remember it and tell their friends about it, especially if the business provides a good product or service.
     While the SBA says that registering the name is the sixth step in starting a business, most entrepreneurs will have a name picked out even before writing the business plan. It will shape the character of the business just like it would a baby.
    Registering a name is not always a must, but may be important for various reasons. A sole proprietor doesn't have to register the name of the business; the name  is the legal first and last name of the owner. LLC's do not need to register a name because the paperwork that is submitted to incorporate will have it. S-Corps, C-Corps and other entities will need to register a name because the liability and licensing do not belong to one person.  Registering a name will, however create a credibility that banks, investors, and other businesses will see and know the company is legit.
    Often business owners will wish to create a ficticious name or what's known as "doing business as" (dba).
For example, owner Frank McClurg who runs an automotive shop wants his company to be known as "Frank's Auto". In this situation he will need to register a ficticious name with either the county clerk, or Secretary of State, which ever the law requires. The Small Business Administration lists individual state requirements regarding these laws.  An LLC would also need to register a (dba) it wished to drop the LLC identifier from its name. Frank's Auto, LLC would then become legally just Frank's Auto. Every time a business owner needs to legally use the name for documentation, application, or liability, it can use the registered (dba).

     Trademarks and image branding are also important in choosing a name. A brand is easily reconized, and trademarks protect other businesses from using the unique name that has been selected.  The United States Patent and Trademark Office helps business owners search for unused names through the Trademark Electronic Search System . Through a 90 minute process an entrepreneur can have his/her business name and brand registered and a trademark created. Protection is given to the first name that is registered so this is important to avoid conflicts with other business that may have a similar name.
    In the end, a business has an image to maintain and the name must be recognizable to the government, banks, and of course, the customers. The name wil provide credibility and protection along with an identity. Just as a baby's name shapes his/her character, so too will the name of the business!