How to Register a Business Name in 4 Easy Steps

Meaghan O'Neill
Follow AD PRO's selection of key steps for how to properly register a business name

Whether you're unveiling an interior design firm or opening the doors to a retail store, learning how to register your business name is one of the first steps you'll need to take. Not only is establishing a name a legal requirement in most cases, but it will also help you to protect the name of your firm. Whether you choose a unique name or use your own, you'll also need to decide how your business will operate: Will you be the sole proprietor or work with partners and employees? Making that decision will determine how you'll register your new business with both state and federal officials. To get started, follow the steps below.

1. File a DBA or “Doing Business As” name.

If you alone own your business—that is, you're a sole proprietor with no partners—this is the easiest and most common way to register your business name. A DBA allows you operate under a business name without going through the complex legal process of establishing a formal legal framework for your business. (For example, you could be John Smith, “Doing Business As” Smith Design Group).

Here's how to register a business name if you want to set up a DBA:

• Contact your state or county clerk's office to learn about specific requirements, as they can differ by region.

• Typically, you'll go to the county clerk's office to file the appropriate paperwork and pay the small fee for filing a DBA.

• If you want to open a bank account in the name of your business, most banks will require you to register your business name.

• Sole proprietors and owners using a DBA (also sometimes called a fictitious or trade name) should be aware that there is no legal distinction between the business and its owner. The proprietor is liable for all business debts, and any business income is considered personal income.

Note: If you are a sole proprietor doing business under your name, there's no need to register your own legal name.

2. Create a business entity and structure.

If you want the benefit of having a formal legal structure, you'll want to set up your company as a limited liability company (LLC), corporation, or nonprofit. An LLC will provide you and your company with more protections than sole ownership will. A corporation is a company, group of people, or organization that is authorized to act as one single entity that is separate and distinct from its individual owners, and can enter into contracts, borrow money, and hire employees. Creating a legal business entity is the most common path to registering a business name, and has a higher cost associated with it than setting up a DBA. Here's what you need to know:

• Hiring a lawyer is not always necessary, but is often recommended as navigating the legal requirements and documents associated with launching a business can be complicated. Partnerships and LLCs must have certain legal agreements; corporations require bylaws and more complex organizational structures.

• Registering your business as a legal entity protects the name of your business at a state level. Regulations and details vary by state, but most in most places, registering your corporation or company protects your business name from being used by any other DBA or company in your region.

• Sometimes corporations and LLCs also register alternate names under which they'll do business. For example, if a corporation's formal name is Smith Brothers, LLC, but it does business under the name Smith Design Consultancy, the company would register both names.

3. Register a trademark.

You may also decide to register the name of your company as a trademark. You can register a trademark with the state, which safeguards your business name regionally. A federal trademark registration will give you additional legal protection nationwide. Keep in mind:

• Before you file for a federal trademark, research the name you'd like to use. There is a fee associated with filing, which happens through the U.S. Patent and Trademark Office, and if someone has trademarked the same or a similar name, your application will be rejected.

• Once your business name is registered, a trademark will ensure that no one else can use the name.

4. Register a domain name online.

Although this step is not a legal requirement, most business owners want to have an online presence with a unique website. To do so, you'll need to register a domain name, which is the URL you'll use to direct customers to your site. Once you’ve claimed a domain, no one else can use the name you've purchased. This is what you'll want to do:

• To secure a domain name, use a reputable registrar, such as GoDaddy, to search for and purchase the name (or names) you want to use.

• Your domain name doesn't need to match your legal business name, trademark, or DBA exactly. You may want to abbreviate for efficiency, or you may find that the precise term or phrase you want is unavailable because it is already owned by someone else.

• In the case of the latter situation, you may want to try to buy the name from the existing owner, or pick another name that is similar, an abbreviation, or adds your location or another term that makes your domain name identifiable.

Congratulations! After following these steps, you are now ready to start doing business under your official company name.