9.03: Registering a Business
Why would a sole proprietorship or partnership need to submit a DBA form for the company? (Select the best answer.)
The name of the company doesn't include the last names of all the owners.
1.Choose a name.
When you're choosing a company name, it's good to make it: Short Memorable Descriptive of what the company does Unique
trademark
is a protected brand name or trade name for a company, product, or service. A trademark helps to differentiate one company, product, or service from others. To protect your company's name so that other companies can't imitate you and mislead customers, you can register the name as a trademark. You can register a trademark with your state or with the federal (national) government. You can register your company's name through the Secretary of State office for the state your company is in. If your business will operate in a small local area, that might be enough. If you'll operate in more than one state or in a large area, it's a good idea to register the name as a federal trademark through the U.S. Patent and Trademark Office (USPTO). Federal registration of your trademark gives you more secure protection over the name. You'll learn more about how to register a trademark on the next page.
The licenses and permits your company needs will depend on the type of business you are starting and the location you will do business in. You can check your local Chamber of Commerce and county courthouse to research the licenses and permits that are needed in your area. This is also where you can find zoning regulations, to make sure it's legal to operate your type of business in your location. You might need to get a permit to do business, such as a permit to sell retail products, a health permit for food preparation, or a home occupation permit for a home- based business. You might need city, county, state, or federal licenses or permits. It's likely that you will at least need to get a city or county license. The state may also require that you get a state business license to operate in the state. Some states require them for all businesses. Others require them just for certain occupations or types of products sold. Most companies don't need a federal license, except for certain highly-regulated business types, such as drug manufacturing, ground transportation, broadcasting, investment advising, manufacturing tobacco, alcohol, or firearms, preparing meat products, or selling firearms.
Almost every business needs to register for taxes and pay taxes to the local, state, and federal government. Most companies need an Employer Identification Number (EIN), which is also called a Federal Tax Identification Number. That number is used to identify your company for tax purposes. You can use that same link to get information about how to get an EIN. The form can be submitted online or in a few other ways. You will probably need an EIN if your company has employees, if your state charges sales tax on retail products or personal services, or if your state charges an income tax on the income of individuals and businesses.
5. Claim your trademark.
As soon as you begin to use your company name, you can include the ™ symbol after it. This means you are claiming the rights to that trademark. After a federal trademark is officially registered, you can use the ® symbol to show that the trademark is federally registered. If your federal trademark is in the process of getting registered, but isn't yet approved, you can't use the ® symbol until the federal registration process is complete. You have to use the ™ symbol until the registration is fully completed. When you see the ™ symbol, that means the company is claiming the rights to that trademark, but they either haven't applied for or haven't received federal registration yet. If you do register a federal trademark and get the right to use the ® symbol, you have to fill out an Affidavit of Use to prove that you are still using the name after certain amounts of time. This is required between the fifth and sixth year after registration, and near the end of each ten-year period after registration.
Research the name.
Before you try to register your company's name with the state or federal government, you need to research the name to make sure it isn't already taken. If you try to register a name that is already taken, or that has a likelihood of being confused with another company, your company's name will probably be rejected. It's okay to have the same or similar name as another company if that company is in a very different type of business that is unlikely to be confused with yours. But if there's any probability that the two will be confused, your name will probably be rejected. It's also important to avoid using someone else's company name, because you could get in legal trouble for using the same name or a name that is likely to create confusion with another company. The USPTO has a trademark search you can use to find other names that might conflict with yours. However, if the company registered the name only with the state and not as a federal trademark, the name probably won't come up on the USPTO search. That means you'll also need to do some local research to find out if there are any other companies in your area using that name or a similar one. You can hire a lawyer with expertise in trademarks to do this for you, or you can do it yourself. Some ways to find information on other business names include local phone and address listings, Internet searches, and state trademark registries.
Which of these are reasons to research names of other companies before turning in your trademark application? (Select three answers.)
To lower the chances of having your trademark application get rejected. To keep customers from confusing your company with another similar company. To make sure you don't get in trouble for using a trademark that belongs to someone else.
4. Register with the USPTO.
You don't have to register your trademark with the federal government, but it gives you better protection and is a good idea if you will do business in different states. The Web site also has information about how much it costs to get a federal trademark. Make sure to keep a copy of the form and payment method for your records. A federal trademark application takes much longer than a state application. You will probably get a receipt within 6-7 months, but the registration probably won't be official for one or more years. This is because it can take the USPTO a long time to conduct its search to decide if the mark can be registered. They won't refund your money if they reject the name, so that's why it's good to research the name in advance.
3. Register with the state.
You will need to register your business name with the state you are located in and any states you will do business in. Registration laws and forms are different depending on the state you are in. You can usually find the forms on your local Secretary of State Web site. After you fill out the forms, make a copy of the form and the payment method for your records. Then submit the forms and payment to the state. After you turn in your application to the state, state officials will conduct a search to make sure there are no conflicting names. They will either accept or reject your application based on what they discover in their search. Registration usually takes about 40-60 days, but it could be longer if there are complications.
DBA name
is a "doing business as" name that the company is known by. It is the trade name or brand name of the company. A DBA name is also called a fictitious name. Fictitious means made up, or imaginary. To get a DBA name for your company, you need to fill out a form that legally connects the company's name with the name of the owner(s). You can get this form from your local county courthouse. If you decide to include the last name of each of the owners in the company's name, then a DBA name isn't necessary. For a corporation or LLC, the forms for naming the company are automatically included in the paperwork for setting up that type of business structure, so a separate DBA form isn't needed.
