On a daily basis, hundreds of people give a start to their new business in the hope of making money out of it. However, the success of every business requires a lot of time and hard work. Well, there is something more necessary than time and hard work that needs to be taken care of before starting a business.
There can be countless things that need to be taken care of with the opening of a new business, like arranging funds, coping with the paperwork, arranging the licenses and most importantly, getting the company name registered. Without this step, no business is likely to get started legally. However, people have many queries related to the registration part of their company, and this topic is likely to answer each and every one of them.
When it comes to the number of ways of registering a business name, there can possibly be 3 that need to be followed carefully.
3 ways of registering a business name
- Register an assumed name
A majority of people, while selecting a business name, keep their own name on the top of their priority list to get their business to be known by their name. However, there are some people who neglect this part and prefer to go with some other name that is known to be an assumed name. So people who prefer to do business under an assumed name need to get it registered under the legal institute.
This name is not given a permanent status to the firm and can even be changed by the owner as and when he calls for it. However, there would be some paperwork that would need to be taken care of to make the changes. This procedure is valid for people working as a sole proprietor, partnership firm, corporate firm or LLC. Also, this procedure is only valid in the very country it was registered, and the same procedure will have to be followed if the business is taken up to another country.
- Trademark and Trade name registration
The trademark and trade name registration is limited to the state in which the business is located. The registration step needs to be repeated if the business is started under the same name in another state. This registration type can protect a business name completely against any misuse and usage with another product. This can also provide you with a surety that the name you have chosen has not already been selected by another firm. No matter for how long you carry on your business under this name, your business name is likely to stay protected against any sort of misuse.
- Forming a business entity
Last but not the least will be forming a business entity for getting your business name registered. In this case, a legal name needs to be chosen that no other business has chosen, as further paperwork needs to be done accordingly. If some other business organization has been running under your chosen name, no arrangements can be made in this condition. For this, detailed research needs to be carried with the state agency. Once you have made sure that no company is running under your chosen name, you can then form a corporation or LLC to get your business name registered.
Importance of business name
For the business you choose to start, its name will work on everyone’s behalf, and it is very important for everyone to give a suitable name to their business firm. Here are some points that can highlight the importance of a business name.
- A business name is the only means of advertising for your business, and no one can get to know about it without a suitable name.
- Helps with loans
- Helps with paperwork
- Confirmation of agreements and contracts
Getting a company name registered is a crucial step, and no business is likely to run legally without this part. We have shared 3 helpful ways of registering a business name that you can follow for yours, and you are good to go with building up a legal business organization. You can also go through the points that highlight the importance of a business name to get convinced for getting it registered.