- [Narrator] 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 as a company.
Let's get you started on the right path to picking a solid
business name in Rhode Island.
Rhode Island is an excellent place to form a business.
It has the sixth best access to funding in the nation
and boasts high rates of entrepreneurship.
Every state has slightly different requirements
for naming a business.
Follow along closely to learn the required steps for naming
a business in the state of Rhode Island.
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.
(gentle 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-L-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 can not include words that could confuse your LLC
with a government agency, such as "FBI",
"Treasury", or "State Department".
Here are some state specific requirements
for Rhode Island LLCs.
If your company is organized as a low-profit,
limited liability company, its name must end with the words,
"low-profit, limited liability company" or the abbreviation
"L3C" or "13c".
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.
Rhode Island does not have any state specific naming
requirements for Corporations beyond what was just listed.
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 LLC or Corporation.
If your business is taxed as an S-Corp,
follow Rhode Island's naming requirements
for the business structure you chose.
For all business structures, your name must be
distinguishable from other existing
businesses in Rhode Island.
A couple examples of names not being distinguishable
would be, "Auto Store Inc.", versus "Auto Store LLC"
The only difference in the name is the business structure.
Changing the words "The", "An" 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,
decide 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 names?
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 till 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 some hassle by having a simple and short name.
Shorter business names are easier to remember
and generally simpler 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 wanna choose the 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 business and growth potential.
Customers in other states may not consider contacting you
if they think you're 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 in 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 or 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 Rhode Island's 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 Rhode Island
on howtostartanllc.com, linked below.
Searching is free, to learn more visit
Rhode Island naming guides linked in a description below.
After confirming your name is available in Rhode Island,
we recommend doing a domain search to see if your 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 Rhode Island.
Think about your branding,
how your name will affect your brand,
and if you want to have a separate brand name
from you 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.
Give the video a like if you found it useful
and subscribe if you'd like to see more.
And if you have questions or encounter any road blocks,
leave a comment below.
Good luck in starting your small business.
(gentle music)