What is a name reservation?
If you are not yet ready to incorporate or form an LLC, partnership, or a corporation, but would like to reserve your business name for future use, you can choose to file a name reservation (costing $50 in Ohio). Filing a name reservation will prevent another company from forming in that state with that name for 180 days. Upon expiration of the name reservation, you may submit another Name Reservation form (Form 534B) to reserve the name for an additional period of 180 days.
What is a Trade Name?
A trade name is the name the business uses for advertising and trade purpose. The trade name is the name that is generally viewed by the public on signs, on websites, and on advertisements. It is important to note that the business trade name may be different from the registered name.
What is a Fictitious Name?
If you are using a trade name that is different from the registered name of your business, you must file a fictitious name statement (also known as a d/b/a/ statement, which stands for “doing business as”). You are required to file a fictitious name statement with your county because doing so allows members of the public to know who is actually running the company. This fictitious name statement is posted in the newspaper and thus becomes part of the public record.
What is the difference between a Trade Name and a Trademark?
Small businesses often confuse trade names with trademarks. Many small businesses assume that once they have chosen a business name and registered that name with their state of incorporation, they have unlimited rights to the name in connection with their business. This is a dangerous and uninformed assumption. Registering a trade name does not provide any trademark rights to a registrant at all. Trademark rights include the right to use something to identify goods and services and to distinguish them from competitors’ goods and services. A trade name, on the other hand, is simply the name under which a company does business.
A trade name can be used as a trademark, to identify its products or services, but only to the extent that it does not infringe upon existing trademarks. Because trademark infringement is not always obvious, it is easy to get into trouble by using names that are sufficiently similar and likely to cause customer confusion. Having to change your businesses’ name or spend money to correct advertising, or even worse, having to pay for the lost profits of the holder of the registered trademark and just some of the problems that can arise with confusing trade names and trademarks. If you want to use your trade name to represent your products or businesses, be sure to consult with a trademark attorney who can help you stay away from these problems.
Crumpton Law LLC is a Columbus Small Business Law Firm, with attorney Matthew Crumpton serving as managing member and lead attorney.
Tags: business name, fictitious name, small business, trade name, trademark
