Ready to start a business? Don’t get caught up with dreams of being your own boss and setting your own hours. First you need to choose a name for your business. It’s the first image a potential customer will have of your company, and there’s a lot riding on it.

What’s in a name?

Choosing a strong business name is a big decision for any business owner. Keep in mind that the more unique the name, the less likely it’s already taken by someone else. Most of the time, businesses can’t have the same name, so start by checking the federal database at uspto.gov to see if anyone else has come up with the same idea.

Claiming the name

After finding an unbeatable name (that no one else has claimed), it will have to be registered. Some states require names to be registered with the secretary of state’s office or another state agency, but most states only require registration at the county level. After finding the correct agency, complete a name registration form, which can usually be found on the office’s website or requested by phone. Submit it with the proper filing fee, which typically ranges from $10 to $50.

Now it’s time to decide what type of business to form. Two common types are a sole proprietorship and a limited liability company (LLC).

• A sole proprietorship can be beneficial for those who are self-employed. It’s the most basic way to start a business, and is tied closely to personal assets for tax purposes.
• An LLC establishes a business as its own entity. It affords a bit more legal protection, limiting personal liability for business debts and lawsuits.

To learn more about these and other types of businesses (and the paperwork required for registration), visit irs.gov and nolo.com.

Trademark your territory

Consider filing for a trademark on the business name as well. It can provide federal and state protection against someone swiping your clever name. Visit the United States Patent and Trademark Office’s website, uspto.gov, for trademark information.

Don’t forget to register an Internet domain name, even if the website won’t be built right away. Visit domain registering websites such as dreamhost.com and moniker.com.

For the inexperienced, this may seem like a lot of fuss over a simple name. Just know that a little planning and research now can lead to a big payoff later. A fitting and catchy name coupled with great service and products can help rake in the money.

Sources:

sba.gov; uspto.gov; nolo.com