Choosing a business name is often one of the first steps in starting a company. Business owners may register a company with a state, file a DBA, create a corporation or LLC, and later consider trademark protection.
These steps can all involve the business name, but they do not accomplish the same thing. Understanding the difference can help prevent a common mistake: assuming that registering a business name automatically gives the business trademark rights to that name.
Registering a Business With a State
When a business forms an LLC, corporation, or another legal entity, the formation process generally establishes the entity under state law.
The state may require the business name to meet certain requirements and may not allow a new entity to use a name that is already registered or otherwise unavailable under that state’s rules.
However, approval of a business entity name is primarily an administrative matter. It does not necessarily mean that the name is available for use as a trademark throughout the United States.
A business can therefore have a properly registered corporation or LLC and still encounter trademark issues with another company using a similar name.
What Is a DBA?
A DBA, often called a fictitious name, assumed name, or trade name depending on the jurisdiction, allows a business or individual to operate under a name that differs from its legal name.
For example, an individual might operate a business under a name that is different from their personal name, or an existing company might use a separate name for one of its business activities.
DBA requirements vary by state and local jurisdiction.
A DBA registration generally serves an identification or registration purpose. It does not, by itself, create the same type of rights as a federal trademark registration.
A Corporation or LLC Is Not a Trademark
A corporation or LLC is a legal entity. A trademark is an identifier used to distinguish the source of goods or services.
These concepts can involve the same name, but they have different legal purposes.
For example, a company could form an LLC called “Example Solutions LLC” while using “Example Solutions” as a brand for its services. The formation of the LLC does not automatically provide broad trademark protection for the brand.
The business may need to consider trademark rights separately.
What Trademark Protection Does
Trademark law focuses on names, logos, phrases, designs, and other identifiers that distinguish the source of goods or services.
Trademark rights can arise through qualifying use in commerce, while federal registration with the U.S. Patent and Trademark Office can provide additional legal benefits.
The scope of trademark rights depends on factors such as the mark, the goods or services involved, geographic considerations, and the likelihood of consumer confusion.
This is fundamentally different from registering a business entity or filing a DBA.
Why the Difference Matters
Imagine a business owner registers a company name with the state and spends several years building a website, logo, social media presence, and customer base around that name.
Later, the owner discovers that another company has established earlier trademark rights in a similar name for related goods or services.
The state registration may not prevent the trademark owner from asserting its rights.
This is one reason businesses should consider trademark research before committing significant resources to a new name.
Business Name Searches Are Not Trademark Searches
A state business-name database can help determine whether a particular entity name is already registered in that state.
It does not necessarily provide a complete picture of trademark rights.
A proper trademark search may involve federal records, state records, common-law use, domain names, business websites, marketplaces, and other sources that can reveal potentially conflicting uses.
The appropriate level of research depends on the importance of the brand and the circumstances involved.
Protecting a Brand
Businesses that plan to build significant value around a name or logo may want to consider trademark protection early.
The process can involve identifying the correct owner, determining the goods or services associated with the mark, conducting appropriate searches, and deciding whether federal registration is appropriate.
Trademark registration is not required for every business, and it does not automatically prevent every similar name from being used. However, it can provide important legal rights and enforcement tools when the requirements are met.
The Same Name Can Have Several Legal Roles
A single name can appear in several different places:
- As the legal name of an LLC or corporation.
- As a DBA or trade name.
- As a trademark or service mark.
- As a website domain.
- As a social media account name.
- As a product or service name.
These uses are related, but registering one does not automatically secure all the others.
A business owner should consider each separately when building a new brand.
Conclusion
Registering a corporation or LLC, filing a DBA, and obtaining trademark protection are three different processes with different purposes.
A state may approve a business entity name or record a fictitious name without establishing broad trademark rights. Trademark protection focuses on the use of an identifier in connection with goods or services and can involve federal registration and other legal considerations.
For businesses planning to invest heavily in a brand, understanding these differences early can help avoid expensive naming and branding problems later.
Because trademark rights can be complicated and highly fact-specific, businesses with an important or potentially disputed brand should consider consulting a qualified trademark professional.
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