How to Register a Business Name

Business name registration example

Business name registration may be unique for different business entities. Let’s walk through one example.

Imagine a person named Robert Hansen opens a residential home rental business. He begins by operating as a sole proprietorship and uses the name "Robert Hansen, Property Rentals.” 

In time, Robert acquires more properties and decides he wants a new name for his business. It’s time for Robert to register as a formal business entity.

Forming a business entity

One option for Robert is to create a corporation or an LLC. To do so, he must file certain registration documents with the appropriate state agency. This requires him to choose a legal business name.

State laws prohibit a company from using a name that is already being used by another company. So, part of selecting a name involves checking the state's records to be sure another company is not already using the desired name.

Robert wants to use the name "Sunrise Properties" and determines that the name is available. Depending on the type of entity he forms, he might file articles of incorporation under the name "Sunrise Properties, Inc." Or, he might file articles of organization under the name "Sunrise Properties, LLC." This would prevent other companies from using the name "Sunrise Properties" in his state.

Creating a corporation or LLC only provides protection in the state of registration. If Robert decides to expand into another state, he may be able to register his corporation in the new state, providing the name is not already registered there.

Registering an assumed name

Any sole proprietorship, partnership, corporation, or LLC that does business under a name other than its legal business name must register the other name as an assumed name.

This is often done with a county agency, but may be with a state agency in some states. This is called a fictitious name in some locations and is also commonly referred to as a DBA or trade name.

If Robert wants to continue operating as a sole proprietorship, he may be able to register the name "Sunrise Properties" as an assumed name. Robert could then use the name "Sunrise Properties." Anyone checking the official records would be able to see that his business is actually "Robert Hansen dba Sunrise Properties."

Assumed name registration is not limited to sole proprietorships. Suppose Robert forms Sunrise Properties, Inc., and decides to start a yard maintenance business that uses a different name. In this case, Sunrise Properties, Inc., might register "Sunrise Lawn Services" as an assumed name. This would then be "Sunrise Properties, Inc., dba Sunrise Lawn Services."

Assumed name registration usually only protects the name in the county where it is registered. If the business plans to operate in more than one county, registration would be required in each county.

Registering a trademark and trade name

If Robert wants to protect his business name and associated visual identity at a federal level, he needs to file for a trademark with the United States Patent and Trademark Office (USPTO).

To secure this trademark, Robert would submit his intended business name, a description of the services his company provides, and a sample of his proposed trademark in use. If approved, the trademark would ensure no other business will be able to use his business name, logo, and other distinguishing visuals outlined in the request. 

Trademarks are available federally and also at the state level, where they are typically more affordable and faster to approve. If Robert doesn’t intend to expand his business beyond his home state, it may be a better option for him to file with the state in which he does business rather than the USPTO.

What you need to register a business name

Every state has different requirements for registering a new business, and some states require a good bit more paperwork than others to register. The IRS has a comprehensive list of state websites available to help you identify exactly what your business will need to be properly registered, although a local attorney will be your best bet for identifying all necessary registration steps.

While registering your business, you’ll likely encounter some or all of the following requirements:

• Registered agent. A registered agent is a person or business entity which can receive legal documents for your business. In most states, a business operating as anything other than a sole proprietorship will need to find a registered agent. 
• File for foreign qualification. If you are registering your business in one state but have plans to operate in other states, you will likely need to file paperwork in your home state allowing you to do so.
• State documents. Registration documents will vary from state to state, but they will typically include information like your business name, location, ownership, management structure, and number and value of shares (if applicable). These items will also play a role in how much it costs to file.

Once you have these in order, you can register your business with the state in which you plan to operate. It may also be necessary to register with your local government or with certain federal or state agencies, depending on your location and what type of business you intend to operate. Consult an attorney or check with your Secretary of State to determine local requirements for registering your business.

Do you have to register your business?

Whether or not you’re legally required to register your business ultimately comes down to the location and structure of your business entity.

In many cases, a small business can register their business name quickly and easily with their Secretary of State’s office. If you’re planning on operating as a sole proprietorship and operating under your legal name, you aren’t required to register at all.

Businesses with more complex structures and tax liabilities will typically need to go through a more involved registration process, but every situation is different. Even in cases where filing is not legally required, registering your business can provide a variety of legal and tax benefits.

No matter what your individual needs might be, our business registration service can help determine the best way to file.

FAQs

How much does it cost to register a business name?

The cost of business name registration varies from state to state, and depends on the structure of the business being formed. The U.S. Small Business Administration estimates the average cost of registering a business is under $300 total.

How do I change my business name?

The process for changing your business name is similar to the initial name registration process in many ways. If your business has members or shareholders, it may be necessary to receive their approval before changing the business’ name. You will also need to update your information with the IRS, your Secretary of State, and any relevant state and federal agencies dealing with licensing and permitting.

Before changing your business name, consider using a DBA to include the proposed name in the list of allowed business names for your entity. In many cases, this will be easier and cheaper, and it will allow you to continue using the original business name when appropriate. 

Is a legal business name different from a DBA?

A DBA is a legal name for a business which can be used interchangeably with the original business name once registered. On official records, the DBA name will be included after the original name of the business as a way of identifying the link between the two.

Brette Sember, J.D. contributed to this article.