Selecting a business name

One of the first details that business owners decide upon is the name of their business. Business names communicate important information about the business’s activities, are vital for branding and marketing, and serve as a cornerstone of a business’s identity. After aprospective name has been initially identified, the legal availability of the name should be confirmed.

To confirm availability of a legal name for a business, a name availability search can be conducted through the California Secretary of State’s office, either informally online or by submitting a Name Availability Inquiry Letter.

If the name is available, for a small fee it can be reserved for 60 days. If a desired name is confusingly similar to a legal name already in use by another business of the same entity type, the name may not be used. Even if the Secretary of State confirms that a legal name is available, that does not necessarily mean that the name may be used as the business’s trade name; the Secretary of State’s name availability search does not cross-reference trademarks, service marks, or registered fictitious business names, which can restrict the use of a desired name.

In the case of sole proprietors or general partners, the legal name of a business may be the names of the individuals; for businesses operating under other business entity types, the legal name is the registered name of the business entity.

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To operate under a different name from the business’s legal name, a Fictitious Business Name Statement must be filed with the county in which the business operates. For example, if a business with the legal name “Example Restaurant, Inc.,” operated a restaurant called “Tasty Examples,” the name “Tasty Examples,” would need to be registered as a fictitious business name with the county in which the restaurant was located.

The general rule of thumb for determining availability of a trade name is that the name must not already be in use within the geographic area of the business, by any business conducting the same or similar type of business activity.

In Napa County, the fictitious business name index can be searched in person at the County Clerk’s office at no charge, or a written request may be submitted for $9. To verify that a name is not already registered as a trademark, the U.S. Patent and Trademark office has an online Trademark Electronic Search System, which may be accessed at no charge.

Alex Myers is a business attorney with Myers & Associates in Napa. Reach him at alex@myers-associates.com or 707-257-1185. The information provided in this column is not intended as legal advice, nor does it create an attorney-client relationship. The information is not a comprehensive analysis of the law — if you need legal advice, contact an attorney.

This column originally ran in the Napa Valley Register on March 31st, 2015. You can read it on the Register's website here: "Selecting a business name"