- [Instructor] Coming up with a business name is one of
the most important steps in forming a business.
Your name affects your branding
and your image of the company.
Let's get you started on the right path to picking
a solid business name in Massachusets.
Massachusets is an excellent place to form a new business,
with a high business survival rate and some of the best
taxes to funding in the country.
Every state has slightly different requirements
for naming a business.
Follow along closely to learn the steps to naming a business
in the state of Massachusets.
In this video, we will go over how to name your business
based on your business structure, branding and brainstorming
business names, and how to check your name's availability.
Be sure to ask yourself the seven essential questions
we provide before you make this critical business decision.
(light music)
One, choose a business structure.
You'll need to determine your company's business structure
before deciding a name, as different business structures
have different naming requirements.
There are formal business structures, like LLCs
and corporations, and informal business structures,
like sole proprietorships and general partnerships.
In this first section,
we'll talk about the naming requirements of each.
Informal business structures.
If you are operating under a sole proprietorship,
your company must operate under the surname of the owner.
In order to use a different name, the owner must file
a DBA, or doing business as, also known as an assumed name,
fictitious name, or trade name.
General partnerships are similar to sole proprietorships,
with the difference being that partnerships
consist of two or more people.
A general partnership's name must consist of the surnames
of all the partners.
Like a sole proprietorship, if you want to operate
under a different name, you need to file for a DBA.
LLC, or limited liability companies.
If your company is an LLC, your name must include the phrase
limited liability company, or one of its abbreviations,
LLC or L.C.C. with a period in between each letter.
Restricted words, such as bank, attorney, law office,
et cetera, may require additional paperwork,
and may also need a licensed professional
to be part of the LLC.
Your name cannot include words that could confuse your LLC
with a government agency, such as FBI, treasury,
or state department.
There are no state-specific requirements for LLCs
in Massachusetts beyond what was just listed.
Corporations.
If your business is a corporation, or a C-corp,
your name must include the words corporation, company,
incorporated, limited, or an abbreviation of any of these.
Here are some of the state-specific requirements
for Massachusetts corporations.
Your name cannot imply that the corporation is organized
for an unlawful purpose or one other than what is outlined
in the articles of incorporation.
When choosing your business structure, you may hear the term
S-corp, which isn't actually a business structure,
but a type of tax structure used by an LCC or corporation.
If your business is taxed as an S-corp,
follow Massachusetts naming requirements
for the business structure you chose.
For all business structures,
your name must be distinguishable from other
existing businesses in Massachusetts.
A couple examples of names not being distinguishable
would be Auto Store Inc. versus Auto Store LLC.
The only different in the name is the business structure.
Changing the words the, and, or a in front of your
business name does not make it distinguishable.
For example, The Auto Store Inc,
Auto Store Inc., and An Auto Store, Inc.
are not distinguishable from each-other.
Using an ampersand instead of and or vice-versa,
such as Smith and Smith, is not different enough
from Smith & Smith using an ampersand.
Your business name can't have words that sound identical
to another business with a different spelling.
Boys Inc., with an S, and Boyz Inc., with a Z,
are not distinguishable.
Two, branding and brainstorming.
When picking your business name, you'll also want to
consider whether your legal business name will be
your brand name or if you will have a separate brand name.
Your legal name is what is listed
on your formation documents.
This includes words required based on your
business structure, such as LLC, corp, or company.
Your brand name is the name you use to market your company
and the name that clients and customers see and use.
When deciding what to name your business,
deciding on your branding strategy
using these three options.
Do you want your business's legal name
to also be your brand name, such as Tiffany and Co.?
Do you want your legal business name to be different
from your brand name?
Hewlett Packard is HP.
Do you want to have a legal business name
and several different brand name?
Gap Inc. is their legal business name, but their brand names
are Gap, Old Navy, and Banana Republic.
While you're thinking about how to brand your business,
start brainstorming some business names.
You should start by brainstorming
at least four to five potential names.
The goal is to come up with a few catchy and creative names,
then check to see if they are available.
A good brainstorming session should last 15 to 45 minutes,
and it's important that you're comfortable.
Think snacks, water, a comfy place to sit,
and your favorite pen.
Use a timer and don't stop 'til it goes off.
If you need more time, take a 15-minute break,
walk around a bit, grab some more water, and start again.
After doing some brainstorming and coming up with a list
of a few business names to choose from,
ask yourself these questions to help pick a name,
or refine some of the names you have.
Is my name simple and shorter rather than longer?
A simple name will be easier to remember,
easier to talk about, and easier to write.
You can avoid from hassle by having a simple and short name.
Shorter business names are easier to remember,
and generally simply than long business names.
If your business name is too long, there's a possibility
that your clients call you by a nickname that you have
no control over and doesn't do your business any favors.
How does the name sound when I say it out loud?
Don't just read the name, actually say it out loud.
Say your name slow, fast, and with a different emphasis
to make sure it doesn't end up sounding like something else.
Is it easy to pronounce, spell,
and does the acronym look okay?
Along the same lines as having a simple name,
a business name will be more memorable
if it's easy to pronounce and spell.
Another important thing to keep in mind is if the acronym
of your business ends up spelling something.
You don't want to choose a name for your business,
only to find out the first letter of each word
spells out FLOP.
Did I include a geographical location in my name?
By including a location in your name,
you may limit your business and growth potential.
Customers in other states may not consider contacting you
if they think you are only trying to do business
in a specific location.
How does the name compare
to other businesses in the industry?
Look at your potential competitors' names.
Does there seem to be a format that other businesses
in the industry follow when naming their businesses?
Does your name stand out in a bad way?
You want a name that's unique and grabs attention,
but not one that will make you seem unprofessional
compared to other companies.
Did I avoid trends?
Naming your business based on trends might give you
a small boost in initial customers, but you'll end up
dating your business when the trend fades away.
What may be a funny joke or reference at the time
will fade away and no-one will understand.
Is my name memorable is it too narrow or literal?
Although you want a simple name and one that describes
your business's mission, you don't want one so unoriginal
that it won't stand out in a crowd.
You want to convey your niche or your uniqueness,
and your name is a great place to do that.
Three, complete name searches.
Once you've narrowed down to just a few names,
you'll want to check to make sure the names are available.
The first and most important search
is Massachusetts business database.
If the name is not available,
you'll have to adjust your name or use a different one.
We provide instructions to search your business name
in Massachusetts on howtostartanlcc.com, linked below.
Searching is free.
To learn more, visit Massachusetts naming guides
linked in the description below.
After confirming your name is available in Massachusetts,
we recommend doing a domain search to see if the name
is available as a URL.
Even if you don't plan on making a website today,
we recommend buying your domain in order to prevent
others from acquiring it.
Next, do a quick search on the US trademark
electronic search system and see whether someone
has already trademarked your name.
Once you know the name is available,
you can choose to apply for a trademark for your business,
but the cost is between 225 and $600,
which may be more than you want to pay for a startup.
Naming your business can be one of the most important
and one of the most fun steps in starting your business.
When deciding on your business name, you'll want to first
determine your business's structure to make sure you are
following all naming requirements of your business type.
You'll also want to check the naming requirements
that are specific to Massachusetts.
Think about your branding, how your name will affect
your brand, and if you want to have a separate brand name
from your business's legal name.
After brainstorming some ideas, you'll want to check and see
if they are available in your state and do a quick
web search to see if they are available as a web domain.
Once you've searched on the state level
and online, look to see if any of your
brainstormed ideas are trademarked.
Now you know all the steps to name your business.
For a more detailed guide,
visit our website at howtostartanllc.com.
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And if you have questions or encounter any roadblocks,
leave a comment below.
Good luck in starting your small business.