June 7, 2023

How to Name a Business the Right Way

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What’s in a name? Everything, especially when it comes to a business name. The tech industry is growing at a rapid pace, with many startups popping up constantly, so picking a meaningful, distinct name that will set your startup apart is key. 

A business name should not be a gimmick; it’s a major responsibility that sets the tone for how customers perceive your brand. It shows customers what you offer and positions your business against competitors. It will have a long-term effect on your brand image. Follow these steps to name your business and ensure you come up with one that sticks — sticks clients to your business’s doorstep and profits to your bankroll. 

TL;DR

  • Start with a broad “word-dump,” thesaurus search, and name-generator session, then shortlist literal, suggestive, or arbitrary options that fit your brand voice.
  • Filter ideas through structure rules: LLC must end in “LLC,” corp needs “Inc./Corp./Co./Ltd.,” sole props default to your own name unless you file a DBA, etc.
  • Run legal checks early: state entity search, domain lookup, USPTO TESS for trademarks, and common-law scans to avoid conflicts.
  • Stress-test finalists – surveys, quick logo flashes, and A/B ads—for recall, pronunciation, cultural issues, and audience fit.
  • Confirm it passes the “easy to spell, say, remember” test and scales with future products/markets.
  • Once clear, lock it in: reserve the domain, file the entity, and apply for trademark protection; Firstbase can handle formation and registration.

Naming a Business Starts from a Creative Point

With such importance placed on a business name, it’s vital to follow an ordered approach, take your time to research the market, and take time to understand how to name a business. You’ll also want to develop a list of potential names, engage in market research, talk to potential customers, and get feedback from friends and family. This creative point should involve the following:

  • Writing down your ideas in a word dump
  • Reviewing a dictionary and a thesaurus
  • Making use of a name generator

Did you know that 78% of startups using crowdsourced naming services reported higher customer recall and brand engagement?

At this Creative Point, Consider Types of Names

While in a creative mind frame, take a moment to think about different types of names. If you want a business name that describes a product or a service, opt for a literal name that describes the business. This type of name is clear and leaves no room for misinterpretation.

For those wanting to avoid literal words, suggestive names can be used for new businesses. Suggestive names evoke feelings within potential customers and convey a brand experience and aspirations.

Following on the extreme side of suggestive names are arbitrary names that speak to the brand’s personality. While fun and memorable, they have no direct reference to the business operations, services, or products. 

While considering the type of name, aspiring business owners and entrepreneurs need to consider the types of businesses when brainstorming a name for their startup.

How to Name a Business According to Business Type and Structure

A good starting point for naming your business: consider brand identity, industry, and your target audience. You’ll then want to consider different types of business structures. Every business structure has naming rules. 

  • Limited Liability Corporations (LLC): If choosing to name your business according to this business structure, you must include the phrase “limited liability company” or at least “LLC” or “L.L.C.”
  • C-Corporations: Should you establish and register a C-Corporation, your business name must include words like “Incorporated,” “Company,” “Corporation,” or “Limited.” You may want to include abbreviations like “Corp.,” “Inc.,” “Co.,” or “Ltd.”
  • Sole Proprietorship: A sole proprietorship isn't a separate legal entity, so it will simply be known by your legal name. You must register your business with your Secretary of State if you want to use another name.
  • General Partnership: General partnerships are known by the partners' last names.

Ask These Questions When Naming a Business 

Now that your business name is locked, loaded, and ready to hit that board above your brick-and-mortar store or the new website you’re developing, you should ask yourself the following questions. 

  • Does it reflect your brand identity?
  • Is it easy to spell, pronounce, and remember?
  • Does it appeal to your target audience?
  • Is it easily placed on marketing materials and your logo?

If you’ve placed a green tick next to each question, you should follow these easy steps to register your business under that name.

Creating a Strong Brand Identity Through Your Business Name

A high-impact name clarifies what you stand for, hints at your value proposition, and anchors every touchpoint, from pitch decks to packaging. Memorable, short, and distinctive names improve recall and word-of-mouth while lowering ad spend over time.

Check that the word choice aligns with the tone you want (e.g., playful vs. authoritative) and keeps space for category expansion; Amazon’s abstract scope aged better than “BooksOnline” would have.

Legal Considerations for Business Names

Beyond state-level entity registration, run a thorough USPTO TESS search, screen for international classes if global growth is likely, and scan common-law databases to catch unregistered marks.

Choose a mark that is “fanciful” or “arbitrary” rather than merely descriptive to secure broader protection and avoid costly infringement litigation later.

Remember that a DBA or trade name offers zero exclusivity; only a trademark grants enforceable rights nationwide 

How to Test Your Business Name

Use quick, low-cost surveys (monadic or sequential-monadic designs) to rate memorability, relevance, pronunciation, and emotional tone.

Complement online polling with five-second logo-name flashes or A/B social-ad campaigns to gauge click-through lift against control names. 

Finally, run small focus groups to uncover hidden linguistic issues or unintended cultural meanings before launch.

When and How to Rename a Business

Consider renaming when your business has evolved beyond its original scope, when facing legal challenges with your current name, or when entering new markets where the name has negative connotations. 

The renaming process should begin with a brand audit to determine what elements of your identity should change and what should remain. 

Develop a clear transition strategy, possibly including a phase where both names appear together with phrases like "formerly known as" or "now known as." Notify all stakeholders, including customers, employees, and vendors, about the change, explaining your reasoning to maintain trust. Update all legal documents, websites, social media accounts, and marketing materials simultaneously for a consistent rollout. 

Budget not just for design changes but also for a marketing campaign to introduce your new identity.

Signals that it’s time: the company outgrows its niche descriptor (“Shopify” outgrew “Snowdevil”), suffers a fragmented product line, or faces negative legacy associations 

If Your Business Name is Available, Register It

If you’ve spent the time to dig deep on the creative front and think of an ingenious name, chances are, no other business has snagged it yet. However, err on the side of caution and check if your business name is available. 

If all signs are a go, it’s time to wrap up this process and register your business name to make it a legally operating entity. Firstbase makes incorporation easy, helping founders create LLCs and C-Corps in 43 states.

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