How to buy a business name legally and intelligently is discussed here. Learn in detail how to conduct an essential trademark search, negotiation, and legal compliances.
Your business name is everything; it may even make or break its success. Most famous brands, upon start-up, had different names.
Your business name has to give the expectation of the consumer and must be easily noticeable.
It has made me realize that after all, a good business name will matter, for in any change in it may be hard and costly; hence, getting it right comes first.
Your business name is the first thing the customer sees. It is going to set the tone to create the first perception of your brand. A catchy name increases the view of your business and its success.
How to Choose a Good Business Name
Your business name is the core of your brand; it is the first thing everybody sees, hence dictating the first impression. A great name should describe what your business is about and what customers can expect from you.
It also makes many people recognize your brand with ease, which is important for current and prospective customers.
Setting the tone and first impression
The best business names are short and unforgettable, such as Apple, Nike, and Pepsi. Shorter names are more memorable, while a clearly distinctive and well-pronounced name makes all the difference in the world.
It reflects brand identity
A catchy and memorable brand name leads to success. Indeed, research indicates that a business christened with a descriptive name does relatively well. Indeed, he said, “One should have in their name what one does.”.
It also illustrates such names that reflect a local area can increase local customer loyalty by up to 40%. This then shows the real value in adding some local flair to your name.
“77% of consumers based a purchasing decision on the brand name alone, finding an appealing name is very important to attract consumers.”
Types of Business Names
There are various ways an entrepreneur uses in naming a business. Knowing the various types of business names you may have will help you in selecting the one that best defines what your brand does. Your firm’s name should relate to your target population.
Descriptive Names
Descriptive names describe the product or services of the company. Examples include General Motors and The Travel Channel. These are easy to come up with, but hard to trademark.
Named Suggestions
Suggestive ones do not describe but create an essence of the company. Examples include Nike, Apple, and Amazon. Often, such names might have a tendency to be very easy to trademark, thereby leaving much room for your imagination.
Arbitrary Names
Arbitrary names Xerox and Kodak are coined words unrelated to the nature of the business but it ends up becoming synonymous with the brand. It may take some time to build a brand name, however; arbitrary names sound very different and can be copyrighted.
Initialisms and Acronyms
Sometimes huge companies are using abbreviations of their name, like a few letters for example, BMW, ESPN, and NASA, and such names may not be that meaningful but short and easily remembered.
Foreign Languages as Source of Names
Some are from another tongue just for that feel in adding depth to personalities. Consider Renault, Sushi Samba, Häagen-Dazs. Sometimes this is how creative brand images of these types are created.
How to Name Your Business
The naming of a business should be wiser. Actually, it is not all about catching up with something; it has something to say. Attract the right kind of customer. This will differentiate it from others. There should be some proper, gradually made plan for finding out the best name.
Brainstorming Techniques
Brainstorm tons of names: write down the words and ideas that really describe what your business is about. Use a thesaurus to think of more words. Draw inspiration from mythology, pop culture, or even your own life.
Using a Name Generator
Online name generators will also help by giving you tons of ideas. Tools like Shopify’s free naming tool let you search by keywords and industry. Such tools can help trigger ideas to use in your name brainstorm.
Shortlist Potential Names
- After having a big listing, do the sorting out: make sure that it is not in use or not too similar in name to any other brand.
- Conduct keyword research to determine how the names perform online.
Google the names to check for reputation. - Try the names out with some friends, family, and any customers in advance.
This naming of the business will eventually yield a perfect name for your business. A name that says it all in relation to your brand can easily be chosen with great thought and with the use of name generators.
The Important Factors to Consider when Naming Venture
Naming any business is a critical decision for entrepreneurs. When you compile a list of various names, adhere to steps that will guide you in choosing the best name. The following points are considered essential:
Availability Checking
First, check if your name is available. Look in state and national databases, domain registrations, and social media. This ensures your name isn’t taken, avoiding legal and branding issues.
Keyword Research
You need to do deep keyword research to understand if your choice of business name is a common search term. A popular name is damaging to your online presence and SEO.
Google Search
Then, search deep in Google and make sure it doesn’t relate to any bad stuff or something utterly irrelevant to your business. It helps you keep your reputation intact and not be confused for anyone else.
Testing the Name
Also, test your name’s availability and keyword research from people’s opinions: ask those people that may know your business and the ones that don’t. That gives a very clear view of how it sounds and connects to your audience.
For this very reason, a study had shown that companies with unspellable names could lose as high as 80% of potential online traffic, as this makes it cumbersome for online customers to locate.
It will also help you in choosing such a business name that should be available and could be searched on the web, plus sound attractive to your audience. A name can make or break an image in case of branding.
How to Buy a Business Name
However, naming the business is just the beginning. You subsequently have to go further and take additional steps to actually reflect your name legally and create ownership of it through some sort of registration procedure. Usuary, this starts off by the registration of your business with the local and state agencies, including the secretary of state office.
Registration with Local and State Agencies
First, you’ll want to purchase a business name. That is to say, you will have to register your firm with the state where your business is going to locate. That entails naming a compliant name, naming a registered agent, then filing the needed paperwork. Fees may range anywhere from $5 to $150 or more, based on the rules in your state.
Registering with Federal Agencies
You would even need to register your business with federal agencies, like the IRS, for obtaining the EIN. This is usually more difficult and costly as compared to the state levels of registration. This becomes very important for a company operating across state borders and selling its products nationally.
Foreign Qualification for Multiple States
If you plan to operate your business in more than one state, you would have to get foreign qualification in each such state, meaning a lot more paperwork and increased fees, but this way your business will be legally recognized in each state you operate in and will follow the law and regulations.
Business name registration can indeed get very tricky. Brand protection is so important, which makes sure that a company is set up legally. Buying business name registration not only at a local and state level but also at a federal level secures the future of your company by taking the proper steps.
Filing or Changing a Trade Name
The process for changing your business’s registered legal name can be costly and quite a headache. Luckily, there’s a simpler, inexpensive alternative available: using a trade name, otherwise known as a “doing business as” name, shortened to DBA. You can get a different name from your registered business name by just filing for a DBA.
To file a DBA, you must file a separate registration with your state or local government. You must do so when you want to rebrand or have to use multiple names. More than 70 percent of all small businesses will also file a trade name in addition to its legal business name.
There are a couple of advantages with utilizing a trade name. It may make your business seem more credible, which distinguishes you from others and defines what your company does. Some 90% of all small businesses choose not to add designations like “Inc.” or “LLC” to their trade name to make it more memorable for branding.
Of course, this has some negative points, too. For example, trade names do not give exclusive rights to a name without proper trademarking, and then the process of filing just takes so much time and works just in the place you have filed it.
If you wish to change your DBA name, here is the step to take:
Verify the new name is free Inform the Secretary of State of the change Inform federal and state taxing authorities. Update your bank account, business license, and all other legal documents.
Update your website, signage and branding materials In other words, a fictitious business name is easy and inexpensive to name and obtain other names. Just remember some of the downsides are how you must file to change your DBA later on.
Final Thoughts
Naming your business is the key to establishing and branding your company. It is going to define the customers’ expectations, make the right first impression about your business, and even place you in a visible position.
Having intelligent naming strategies with legality in mind, you will go forth and choose that name which will help your business thrive. Actually, the name of a business is very significant in keeping away from legal problems or in enhancing a brand.
The same needs to be duly researched, trademark and copyright checked, and legally registered in order to protect the idea. A name, once chosen, will then differentiate the brand, assist in word-of-mouth, and enhance customer recall. Unique, clear, and it should grow with your business.
It must be employable and web and social media available. Be sensitive in a cultural sense, appeal to your target demographic and your company values/goals. The homework will pay in dividends as you test the names to land the one which resonates with your customers and sets them up for success.
FAQ
What does the selection of a right business name mean?
Your business name is everything-it’s a preorder of what each customer will be expecting; it dictates first impressions and visibility. As a matter of fact, a great name should actually represent exactly what your brand is and what it’s trying to do.
What are the types of business names?
There are basically five ways of naming a company, namely a name may be descriptive, suggestive, arbitrary, an acronym, or derive from another language.
How do I go about naming my business?
Brainstorming: Share all your ideas and take free rein of internet tools for inspiration. Check the availability of the name and then study some keywords. Ask friends and family for feedback in order to eliminate options.
What is the most important thing with regard to naming of businesses?
First comes naming with the check of the name’s availability as such, then research on keywords, Google search, and finally testing the naming on friends and strangers.
How to Trademark or Legally Register and Purchase a Business Name Legal?
Recognition of your name would come from registering with local and state agencies. You will have to provide an EIN, provided by the IRS. Foreign qualification is included if you do operate your business in more than one state.
Can I change the name or use a trade name for my business?
Changing your legally-registered business name can be very costly, and quite a pain. A trade name, on the other hand, or “doing business as” name is easier and less expensive.
