3 Steps to Take Before Deciding on a Craft Business Name
Choosing the right business name usually takes a lot of effort. And once you find one you love, you must be sure it’s not infringing on another business’s name.
A good business name should:
- Be beneficial to your business
- Appeal to your ideal customer
- Be easy to spell, pronounce and remember
- Help describe your business
- Grow with your business (e.g. using your legal name restricts you if you bring on a partner or want to sell your business one day, using too specific of a name can make it difficult to expand the products or services you offer, etc.)
- Work as a domain (www.yourbusinessname.com)
- Is available as a domain (you can check using a hosting company such as GoDaddy or a domain directory such as WHOIS)
- Funny words aren’t formed when spaces in your name are removed
- Be legal
- Not infringe on another business’ name or trademark
- Not use “LLC,” “Inc.” or “Ltd.” unless your business is registered as an LLC, is incorporated or is a limited company
If you don’t have a name picked out, here are a couple of articles that will help you come up with a name for your craft business:
If you already have a business name or have narrowed your choices down, you can complete the following steps:
Step 1 – Determine if it will be a trade name
A trade name (also known as a DBA (Doing Business As), trading name or fictitious name) is another name your business operates as, other than its legal name.
In most cases, you must register a trade name/DBA but the rules vary by jurisdiction.
You would register a trade name if you’re operating as a sole proprietor but are calling your business something other than your legal name.
For example, if Jane Smith chooses to operate her business as a sole proprietor but wants to use “Jane Smith’s Jewelry” to identify her business, she would register “Jane Smith’s Jewelry” as a trade name.
If you’re setting up your business as an LLC or Corporation and the name you register it as is the same name you’ll use on business cards, your website, etc. you do not need a trade name and will use your business name.
But, if you plan to use a different name on business cards, your website, etc., you’d register that name as a trade name.
For example, McDonald’s legal business name is “McDonald’s Company” but they do business as “McDonald’s.”
You may also register a trade name if you want to start a new and separate business under an existing LLC or Corporation.
For example, let’s say you’re operating an incorporated graphic design company (e.g. Jane Smith’s Graphic Designs Inc.) and want to start a soap business (e.g. Jane Smith’s Soaps). You could register “Jane Smith’s Soaps” as a trade name under Jane Smith’s Graphic Designs Inc. and Jane Smith’s Soaps would benefit from the limited protection of the incorporated company.
You can register multiple trade names under an LLC or Corporation but it can come with risks.
For example, if Jane Smith’s Soap got hit with a lawsuit, the assets from Jane Smith’s Graphic Design Inc. could also be in danger, even though the lawsuit may have nothing to do with the products/services of the graphic design company.
Step 2 – Ensure your business name isn’t infringing on another’s
To register your business name or trade name, you must choose an available name. When a business name is registered in a state/province, it prevents similar businesses from registering similar names in the same state/province.
Businesses can register a business name (or trademark it) in multiple states/provinces, federally, or in other countries to have the rights to a name outside of where they conduct business.
In some locations, more than one business can use the same or similar trade name. However, you cannot register a trade name (or business name) that is the same as, or similar to, an LLC, incorporated business, or trademarked name selling a similar product/service in the same jurisdiction.
For example:
- Two businesses with the same or similar names in the same state but one sells jewelry while the other is a plumbing service = most likely okay
- Two businesses with the same or similar names in the same state and they both sell jewelry = most likely NOT okay
- Two businesses with the same or similar names, both selling jewelry but one is operating in Florida while the other is in California = most likely okay
- Two businesses with the same or similar names, both selling jewelry but one is operating in Florida while the other is in California and the California business has federally registered their business name as a trademark = NOT okay for the Florida business to use the name (unless they started using it before the California business registered it as a trademark; then they may be able to continue using the name in Florida only).
You also want to be aware of trademarks when registering your domain name (name of your website URL) and choose one that doesn’t infringe on an existing trademark.
For example, if Stella and Dotty decided to start a jewelry business and registered the domain www.stelladotty.com, they would run the risk of a trademark infringement lawsuit from the popular accessory business Stella & Dot (www.stelladot.com).
The purpose of preventing duplicate names is to avoid market confusion.
The government doesn’t want consumers to be confused between two companies selling a similar product. Customers wouldn’t be confused between a jewelry company and a plumbing company, which is why it’s usually okay for both to register a similar name.
Business Name Search
Before you pay for a name search service, research on your own. Look for the business name(s) you’re considering by searching:
- Online directories
- Domains on WHOIS
- Local directories – your province or state may have a free directory for you to search businesses or request a search, free of charge.
- Social media – check to see if your business name is registered on popular social media platforms such as Facebook, Instagram or Twitter; it may lead you to a registered business.
Check the exact spelling of your business name as well as:
- Misspellings or alternative spellings (e.g. “Jane’s Jewelry” would want to check for “Janez Jewelry”, “Jane’s Jewellery”, “Jaine’s Jewelry”, etc.)
- Similar names (e.g. Jane’s Jewelry” would check “Jane’s Jewels”, “Janey’s Jewelry”, “Jewelry by Jane” etc.)
It’s a good idea to also conduct searches in other states/provinces/countries if you ever plan to operate your business outside of your jurisdiction.
Step 3 – Register your Craft Business’s Name
Once you’ve chosen your business structure (e.g. sole proprietor, partnership, etc.) and a business name, you’ll likely need to register them.
Sole proprietorships using a name other than the owner’s legal name are typically required to register a trade name.
Some jurisdictions (such as Utah) require you to register your business name even if you’re using your given name to conduct business (e.g. “Jane Smith”), while other jurisdictions (such as Newfoundland and Labrador) currently don’t require sole proprietorships to register a trade name.
LLC’s and Corporations that want to conduct business using a different name than the one they registered their business as, must register a trade name.
For example, if a business is registered as “Jane’s Company” but wants to sell products under, and be known as, “Jane’s Jewelry” they’d register “Jane’s Jewelry” as a trade name.
Laws vary depending on your jurisdiction, so this step will require a little research on your part.
Try visiting your government’s website for more information or Google-ing “Do I need to register my business name/trade name in _______ (where you plan to do business)”.
Take it from me, you don’t want to skip these steps, build your business, and then find out you can’t use your business name because it’s already registered. That can be an expensive mistake and may require you to redesign your logo, reprint marketing materials, etc.
I hope you found this article helpful!
Finally understand why your hard work isn't resulting in more sales
Join over 18,000 others and sign up for the
Made Urban newsletter
Hey, I’m Erin 🙂 I write about small business and craft show techniques I’ve learned from being a small business owner for almost 2 decades, selling at dozens of craft shows, and earning a diploma in Visual Communication Design. I hope you find my advice helpful!