Choose your business’ name carefully
One business matter that is often overlooked or not properly reasoned is choosing an appropriate name for your business.
One business matter that is often overlooked or not properly reasoned is choosing an appropriate name for your business.
Many people just happen upon a name and do not put the forethought and planning into the name of their business. The reason why this is so important is that the company name will form the basis upon which the business and its products or services will be recognized, thereby building up what can amount to a considerable amount of goodwill and value to the business.
The first consideration is whether to simply register a business name under the umbrella of a sole proprietorship. Aside from the unlimited liability of this business structure that we have discussed previously, this type of business name registration provides minimal name protection and if you are planning on developing brand awareness through your business name, you are taking the risk that someone can come along and incorporate or trademark your name and you will be forced to compromise.
There are some simple guidelines when choosing a name for your incorporated company:
Talk to your marketer and lawyer — the last thing you’ll want later is a letter from another owner name that conflicts with yours.
Jeffrey D. Cowan, B.A., B.Comm, LL.B., M.B.A., is the Principal of Cowan & Taylor, Barristers & Solicitors which practises in the areas of business and real estate law. Cowan appears in Your Money every other week. E-mail jeff@cowanandtaylor.comor call 416-363-5046 with questions for future columns. The information contained in this article should not be relied upon as legal advice.