What’s In a Business Name? So much more!

‍Names – whether of individuals or entities are the first things we remember (or at least strive to) when we interact with individuals, or think of an unmet need that a business entity can satisfy. Sometimes – in the case of individuals, the less we interact with them, the more likely we are to forget about their names. A name, whether corporate or individual, conjures up feelings, emotions, perceptions, and may evoke images of what that individual/place/entity represents to us. Just as individuals have personalities, companies have their own unique brand names, and what that represents to potential and existing customers.

A company’s name is at the center of its brand, and what that brand seeks to communicate. So, what’s in a name for your startup or small business? So much more than just a federal or state company registration compliance requirement! As such, you need to take the exercise of figuring out what you are going to name your company very seriously.

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Here are some of the things to consider as you register your company name:

·        Take your time to decide a suitable name - If this is going to be your livelihood, you need to mean it and devote time to figure out a name that resonates well with the raison d'être (reason of existence), of your company. Naming companies is an art. Some have it while some do not. You can prompt AI or consult a business registration advisor, for names suitable for your industry / sector.

·        Make an art out of it - A catchy and memorable name can go a long way to helping your company name stay in the minds of potential and existing customers.

·        Empower yourself, and your business with the right incorporation entity – Research the benefits and drawbacks (advantages and disadvantages) of all types of business entities in the USA, such as Partnership, Sole Proprietorship, Limited Liability Company (LLC), Corporation, S Corporation, and Non-Profit Corporation. Pay attention to the legal(liability issues) and tax benefits or drawbacks of incorporating under each and every form and choose the one that appeals to you. You do not have to be a lawyer to understand this. If you do not have time to research this, contact a small business advisor that can help explain each of these entities (forms of incorporation) and their unique attributes, advantages and disadvantages, for free.

·        Get to work on your brand message – Congratulations for registering your business. You want to pat yourself on the back? Don’t! This is not the time for that.  The name is just the beginning. Some pioneering tech companies were named after a fruit, or a major river, which turned out to be a masterstroke. Can you imagine doing that today – then start to vigorously work on your company brand so that people do not think of a fruit, or a river when they hear your company’s name? Whatever name you settle on, you need to gird yourself for the difficult job of building an enduring brand name that delivers on the promises you communicate to your clients, and do so spectacularly that the mere mention of your company’s name conjures up expectations of superior products and services, at a certain price expectation.

‍Consider trademarking your company name – Whenever you can, you should trademark your company name as soon as possible. Trademarking your name makes it proprietary to your business and products and gives you a bigger saying on who can be legally associated with your name. If you do your business so well that it becomes extra-ordinarily successful, a lot of people will want to be associated with your company name – for better, for worse.

Protect your company name with the same zeal you would, your own. Imagine for a second that another individual masquerades as you. They do not have the burden of protecting the reputation of your name, so they can go about breaking the law, and in conduct that is damaging to your name and the good things associated with it – like a good credit score, relationships, a good reputation, and a name free of legal troubles. Just as your personal name is your integrity, your corporate name is your promise to potential and existing clients. Obtaining trademark rights over your company name can give you the legal rights to stop unscrupulous competitors from reaping you and your customers off through counterfeit products, committing fraud, or offering bad service in your company's name. Trademarking your name is like calling the 'legal' dibs on a name that you got to first, so that nobody else can infringe on your intellectual property rights by using your company name, logo, and its associated images without your consent.

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·        Remember Caesar, and render his dues – In other words, pay your business taxes and other statutory operational fees, as your business may require. As soon as you register your company and start trading, educate yourself on the tax calendar and all the accounting records you have to keep to make filing your company taxes and other operational fees easy and affordable for your entity. Each year, the IRS administers tens of billions of dollars in civil penalties to individuals, business entities, employment, and estate taxes. Many business entities end up on this list because of lack of tax planning. Do not wait until the tax period to find out how much your entity owes the IRS in business income taxes, and whether you have enough money in the bank to make the payment. Engage in active tax planning so that you have a very good understanding of what is happening in your business, and how much you will need to pay in taxes well in advance of the corporate tax filing period.

Running a business means understanding the things you do best, and doing them, and subcontracting or outsourcing those that you do not. Time is money, and you do not always have the luxury of figuring things that you are not an expert at, at the expense of leaving the things that you are - like running your business to boost your sales revenue, undone.  Remember opportunity cost. Taking 500 hours to do your company payroll and taxes is not worth it, if you could use those 500 hours to generate more revenue for your business, and leave the taxes and payroll administration to an expert who can do it in 10 hours, because they do it everyday. You also have to figure out if you want to employ someone who can be on your payroll to do taxes and HR administration, or you are better off outsourcing these to a smaller tax and payroll specialist firm for a monthly or quarterly fee. Some businesses have extra, required licensing and other compliance filings as required by city, county, state, or federal laws. There are always firms that specialize in these areas to make it easy for businesses to comply. Figure out what works best for your business. Whatever you do, keep working hard to make your newly registered entity a success!