When you're launching a new business, choosing a name is one of the most important steps. After you choose a business name, you need to do everything possible to protect it. This process involves registering the legal or fictitious name as well as filing for trademark protection.

Business Names That Register Automatically

When you register a corporation, limited liability company or limited partnership, that process automatically registers the business name. Filing the articles of organization or incorporation or the statement of limited partnership with your state government protects your business name so that other companies within the state can't use it. This legal name is required for all government applications and forms, including applications for employer permits, licenses and tax IDs.

When You Need to Register a Business Name Separately

If your business is a sole proprietorship, then you use your own name as the business name. If you use anything other than the legal or your personal name, however, you have to register this Doing Business As name. The DBA name is also referred to as an assumed, fictitious or trade name.

The Benefits of Registering a DBA Name

The biggest benefit of registering a DBA name is gaining legal recognition for the business name. Having this gives you the ability to enforce contracts and open a bank account under that business name. The registration also protects your business from other companies using the name.

Registering Your DBA Name

Registering the DBA name is a simple process. It lets the government know that you plan to do business under a different name from the legal business name or your personal name. How you go about it, however, depends on the state in which your business is located and registered.

Some states have business owners register DBA names with the Secretary of State. Other states require the names to be registered with the county at the county clerk's office. Despite this, not all states require business owners to register DBA names.

Registering a Trademark

Even though registering a DBA name protects your business, you can register a trademark to gain further protection. Although you don't have to register a trademark, there are two types.

You can apply for a state or regional trademark in your state or region. With this trademark, it's easier for you to recovery property in the event that another company in your state or region uses the DBA name or one that could confuse the public.

You can get a federal trademark by applying with the U.S. Patent and Trademark Office. This protection stretches beyond the state or region in which your business is located to the entire country. However, it can be difficult to obtain a federal trademark for a business, so sometimes a state or regional trademark is more suitable.

Tips Before Registering a DBA Name or Trademark

Before registering a DBA name or trademark, you should do some search to ensure that no other company has proposed a similar name. Using the same name as another company with a trademark violates that company's rights. Then, the company may take legal action against yours, which could result in fines and other damages. Your applications will also be rejected, and you'll lose the time and money that you spent filling them out.

It's also beneficial to start this process before your business is ready for operation. The reason is that it could take six weeks to six months to secure the DBA name.

Prevent Damage to Your Business

A business name is the keystone of every company and its marketing efforts. Registering the name is a vital step to obtaining the legal right to operate your business. It also protects your company's brand from the start, ensuring that it stands strong against possible legal challenges in the future.