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Choosing a Corporate Name

It is a good idea to start the process with several choices for your corporate name before beginning research to determine whether the corporate name you have selected is available because it is very possible that your first choice may be unavailable.

The general rule is that no Secretary of State will allow the filing of Articles of Incorporation if the corporate name is the same as or closely resembles any name on each state's official list of corporate names, which list includes names of corporations in good standing, foreign corporations qualified to transact business in the state, and corporate names reserved in the state.

Another reason for starting with several choices for your corporate name is that not only will you be choosing a name and incorporating in order to do business in your state of choice, but you will also be choosing an Internet domain name for your corporation. If possible, it is preferable for a corporate name to bear some relation to the corporation's domain name. Because of the international aspects of the Internet, the selection of a domain name increases the possibilities that you will be unable to use your first choice of a domain name.

Choose A Desirable, Usable Name

Each state will have its own specific legal restrictions on corporate names. These restrictions can be as simple as stating preference for upper or lower case, or can prevent the corporation from having certain words in its name, such as "bank," "financial institution," or "cooperative," "Federal," "Reserve," "National," or "United States." Secretaries of State may also have an unwritten policy on swear words or words that appear to be "obscene." Unless you have a very good reason and are interested in spending large amounts of time and money for a fight, you will want to stay away from those types of names for your corporation.

Related Articles Reserving a Corporate Name Trademark Considerations in Choosing a Corporate Name

Each state's Secretary of State manages the corporate formations, which includes providing information on the requirements and legal restrictions for corporate naming.

Check Name Availability in Chosen State of Incorporation

The general rule for corporate names is that they must be unique. In other words, there may not be more than one corporation per name per state. Furthermore, a new corporation may not have a name that is deceptively or confusingly similar to a registered corporation in good standing. This is true even if you wish to use your own name in your corporate name. Placing a ".com," or ".net" at the end of a corporate name is considered a part of any corporation's name, so that adding ".com" or ".net" to a name similar or the same as one you desire will generally not make that name available for you if the name is already in use.

To determine whether your name is available in your chosen state, you will need to contact the Secretary of State for that state, either by viewing the website, calling, or by writing a letter. If your chosen state has a list of active corporations, you can enter your choice of corporate names and see if someone else is using it. If another corporation already has the name you desire, you may not use it. Try looking up a name with variations or a completely different name. It is unlikely that you will be able to discover whether your choice has been "reserved" with your chosen state's Secretary of State.

Many states offer a service whereby the Secretary of State will officially check to see if a name is available. This service can take place over the telephone or by letter. There may be a charge for this service. Once you determine that a name is available, the next step can be to reserve the name, or immediately file incorporation papers. It may be possible to check availability and reserve a name simultaneously. See below for discussion on reserving your corporate name.

One of the ways to incorporate your business is to use an incorporation service. The fees for the services include the determination whether your chosen corporate name is available. Before deciding to use an incorporation service, it is still a good idea to have gone through the process described above, determining that your chosen name is available.

Even when you have determined that your chosen name is available with your Secretary of State, you should further research the availability of the name.