How to Find a Good Company Name
Choosing a name for your business is the start of something big, but too many small business owners make this important decision with too much focus on the near term. Powerful company names convey the purpose behind the brand, are easy to remember, and position the organization for long-term growth.
What Is a Business Name, Legally Speaking?
A business name is the title used to designate a company, though the legal business name may not be the marketed name. For example, many small businesses are organized as limited liability corporations, or LLCs. This entity can market itself under a different name as long as it notes that second moniker as a DBA, which stands for “doing business as.” So, Sovis Media, LLC. could conduct business and operate as kolo t.c. using a DBA.
Good names for firms may not be good names for marketing, which is why many small businesses use DBA.
What Makes a Good Business Name?
A business name establishes identity. Effective brands share a few key characteristics; you can use those traits to name your small business.
Legitimacy—A legal business name establishes credibility and trust. This is especially important for new companies, as customers may be leery of an organization without a proven track record.
Memorable - Your brand name should be memorable and reflect your values and market. Studies show that the average person sees between 4,000 and 10,000 brand logos or mentions per day; out of all the noise, your company name needs to stand out.
Unique - There are legal and practical reasons for choosing a unique company name, especially in fragmented marketplaces. (We’ll get into that in a bit!)
How to Choose a Company Name
Once you understand your core products or services, it’s time to brainstorm.
Brainstorm - First, write down as many options as possible over an hour or so, and walk away. Give it time to settle, then review your list with trusted business professionals, a consultant (hey there, ho there), or potential customers and see which names fit.
Test it - Make sure your company name is easy to pronounce by writing it down and asking friends and family to read it. Bonus points if they can remember it after a few days!
Think about logos - Most brands have a graphic logo and wordmark to represent their business. At this stage, compare your favorite business names to see how they look as logos.
Check company name availability - Your good idea might already be someone else’s brand name.
But how do you check if a company name is available? And what happens if two companies have the same name? Let’s tackle those questions.
How to Check Company Name Availability
In Michigan, you can use the Department of Licensing and Regulatory Affairs (LARA) website to search all registered business entities. You can search by entity name, the owner’s name, or the identification number. Check your state’s Secretary of State website for a similar tool. You can also Google (other search engines are available) to see if the name is being used in different states and get a feel for the search results for that term.
Can Two Companies Have the Same Name?
Yes, two companies can have the same name in some scenarios, including:
The companies are in different industries.
The companies are in different states and do not operate across state lines.
Even in these situations, companies with registered trademarks may challenge a company with the same name, regardless of industry or where they operate. If you’re unsure about the legal status of your business name, consult a business attorney.
When you’re ready to claim your business name, you’ll probably choose to register as an LLC. In Michigan, you can file the required Articles of Organization (form CSCL/CD-700) with the state.
You Have Your Name, Now Create Your Brand
A powerful brand name is the start of an effective brand. Sovis Media will help you establish your brand’s look, feel, and voice across marketing channels. Start strong with an SEO-rich website, a professional logo, and a curated mix of social media and email marketing. We’ve been helping Traverse City small businesses grow for over a decade.
Get in touch, and let’s get going!