Entrepreneurship, Second Edition

12.4. Choosing a Name

The choice of a name for a business may seem at first to be a matter of personal taste, without many legal ramifications. However, since the name of a business is ultimately the repository of its goodwill, the owner should choose a name that will not be confused with the name of another business.

Although partnerships and sole proprietorships need not do so, corporations, limited liability companies, limited liability partnerships, and limited partnerships obtain their existence by filing charters with the state. As part of this process, each state will check to see whether the name of the new entity is "confusingly similar" to the name of any other entity currently registered with that state. Some states will also deny the use of a name they deem misleading, even if it is not similar to the name of another entity. Selecting and protecting marks such as corporate and product names is covered in more detail in Chapter 13.

Once Deborah and Dave have chosen a name for their business and product, and elected the level of protection with which they are comfortable, they can turn their attention to the initial funding of their enterprise.