🚀 Starting a Business

Pick a Business Name and Check If It is Legal

Don't print business cards until you verify your name isn't already taken by a competitor or the IRS.

By MyBizNerd Team · Published

Key Takeaways

  • Search the USPTO TESS database to ensure you aren't infringing on a federally protected trademark.
  • Check your local Secretary of State website to verify the name is available for registration in your specific state.
  • Avoid restricted words like "Bank," "Insurance," or "University" unless you've specific state licenses to use them.
  • Secure a matching domain and social handles immediately after confirming legal availability to protect your brand online.

According to the U.S. Small Business Administration (SBA) in 2024, nearly 5.5 million new business applications were filed, meaning the competition for a unique name is at an all-time high. If you pick a name that's already in use, you risk a cease-and-desist letter that could force you to rebrand your entire shop after you've already spent thousands on signs and logos.

The Legal Reality of Your Business Name

Most first-time owners think that if a domain name is available for $12 on GoDaddy, they own the brand. That's a dangerous mistake. You actually have three different levels of "naming" to worry about, and they don't always talk to each other. First, there's your legal name, which is what shows up on your tax returns and bank accounts. If you're a solo cleaner in Ohio, this might just be your own name unless you file for a DBA (Doing Business As) name. Second, there's your LLC or Corporate name, which you register with your state. Finally, there's your Trademark, which gives you the right to stop others in the whole country from using your name. I once talked to a landscaper in Georgia who had to pay a lawyer $4,000 just to settle a dispute because he used a name a guy in Florida had already trademarked. It doesn't matter if you didn't know; the law assumes you checked.

How to Run a Proper Search

  • Start with the USPTO: Go to the United States Patent and Trademark Office and use their search tool. You're looking for "confusingly similar" names, not just exact matches. If you want to open "Fresh Coffee" and someone owns "Fresh Cafe," you might have a problem.
  • Check your Secretary of State: Every state has a business registry. If you live in Texas, search the Texas Secretary of State records. If someone already has an LLC with your exact name in your state, the state will reject your filing paperwork.
  • Google is your friend: Run a search for your name plus your industry. If a 20-person HVAC business three towns over is using the name, even if they haven't trademarked it, they might have "common law" rights that could cause you a headache later.
  • Verify IRS requirements: When you eventually apply for your EIN (Employer Identification Number), the name on your application must match your legal formation documents exactly.

Words You Aren't Allowed to Use

  1. Regulated Industries: You cannot use words like "Bank," "Trust," "Insurance," or "CPA" unless you're actually one of those things. The state will flag these and ask for your professional license.
  2. Government Confusion: Don't include words like "Federal," "Reserve," or "Treasury." It makes it look like you're a government agency, which is a fast way to get your application denied.
  3. Entity Suffixes: You can't put "LLC" at the end of your name if you haven't actually filed the paperwork to become a Limited Liability Company. It sounds professional, but it's technically a misrepresentation.

Checking for a name is about more than just being creative; it's about protecting your bank account from future lawsuits.

Once you find a name that passes the USPTO and state searches, buy the domain name immediately.

Even if you aren't ready to build a website, spending the $20 now prevents a "domain squatter" from buying it and trying to sell it back to you for $2,000 next month. com isn't a direct competitor in your niche. If you need help picking a name that won't get you sued, you can read our guide on how to name your business safely. After that, your next move is to file your articles of organization with your state to lock that name down for good.

📋 Disclaimer

This article is for informational purposes only and does not constitute legal, tax, financial, or professional advice. Laws and regulations change frequently, and the information presented may not reflect the most current legal developments. Always consult with a qualified professional (CPA, attorney, financial advisor) before making business decisions based on this content. MyBizNerd may receive compensation through affiliate links, but this never influences our recommendations.