How To Name A Business In Alabama

Our guide will take you through the 3 key steps to finding your perfectbusiness name. If you’re unsure of the type of business you would like to start, check out our detailed list ofsmall business ideas, a great resource tostart a business.

首先,你需要选择您的业务结构re; this will make a difference when choosing a name because there are different naming rules for each structure. Next, you'll brand your business; this will show people who you are and what you are about. Lastly, you'll complete a business name search to make sure your name is unique.

Corporation

AC Corporation (C corp)is a separate legal entity from its owners with a basic operational structure consisting of shareholders, officers, directors, and employees. A C corp business structure will protect your personal assets.

Alabama Corporation Naming Rules:

• Youmust reserveyour corporation’s nameonlineorby mailbefore registering it. If filing by mail, you must submit your reservation at least two weeks prior to registration. Online filers may reserve their name at the time of registration.
• Your namemust containthe word “corporation,” “incorporated,” or an abbreviation of one of these terms. Exceptions are: nonprofit corporations, banks, trust companies, savings and loan associations, and insurance companies.
• Anybanking-related nameneeds a letter from the Alabama Banking Commissioner’s Office, and anyinsurance-related nameneeds a letter from the Alabama Insurance Commissioner’s Office.
• Any name using aprofessional designationin the name (i.e., engineering, attorney) requires a copy of the license of one officer/member or a letter from the governing agency allowing the use of the name without licensing.
• Your namemust be distinguishablefrom any name on the record with the Secretary of State (words or abbreviations indicating the type of company such as LLC, Inc., etc. are not taken into account when determining distinguishability).
• Your namecannotinclude words that could confuse your corporation with agovernment agency(FBI, Treasury, State Department, etc.).
• Your namecannotinclude any words that indicate or imply that the corporation is engaged in a business that is not authorized by law to pursue.

Sole Proprietorship

Asole proprietorshipis the simplest business type in Alabama. A sole proprietorship is an informal business structure and itdoesn’t provide personal asset protection.

Alabama Sole Proprietorship Naming Rules:

This business structure must operate under the surname of the owner. To use a different name, the business owner mustfile a DBA(doing business as), also known as a trade name in Alabama.

General Partnerships

General partnerships are similar to sole proprietorships. The difference is that a partnership consists of 2 or more people. A general partnership is an informal business structure and itdoesn’t provide personal asset protection.

Alabama General Partnership Naming Rules:

General partnerships must include the surnames of the partners. The business name must contain the words “General Partnership”, G.P., or GP OR “Not For Profit General Partnership”, N.G.P., or NGP. To use a different name, business owners mustfile a DBA(doing business as), known as an trade name in Alabama.

S Corporation

An S corporation (S corp) is a tax classification, not a business structure. Both LLCs and corporations can be an S corp.

If your business is taxed as an S corp, you should follow your state’s naming requirements for either a corporation or an LLC, depending on your business structure.

There are Three Main Branding Strategies:

1. The business's legal name is also the brand name.If you are forming an LLC or corporation, you will register your legal name when you file your formation documents.

2. The business has a legal name that is different than its brand name.If you choose to have a different brand name, you will need to file a DBA. To learn more, visit our easy step-by-stepAlabama DBA guide.

3. The business has a legal name and multiple brand names.If you choose to have multiple brand names, you will need to file for DBAs. To learn more, visit our easy step-by-stepAlabama DBA guide.

DBA

When a business uses a name besides their legal name, they create a DBA (doing business as). A DBA is sometimes called an assumed name, fictitious name, or trade name.

To learn more about using a DBA to brand your business, read ourWhat is a DBAarticle on Startupsavant.com.

Brainstorm Business Names

You should start by brainstorming at least4-5 potential names. The goal is to come up with at least a few catchy and creative names. Then, we will help you make sure the names you chose are available.

A goodbrainstorming sessionlasts for about15-45 minutesand it’s important that you are comfortable in all ways— think snacks and water, a comfortable chair, your favorite pen.

Use a timer and then stop when it goes off. If you need more time, take a15-minute breakand start your timer again. The more you brainstorm, the better.

Creative Brainstorming Techniques:

• Free Writing.Keep your pen on the paper until your timer goes off. Don’t limit your ideas, don’t analyze whether they are good or bad. Just keep writing.
  
  
• Word-association.Start by writing a couple of random words. Next, write down words that tie your two random words to your business's mission, service or product. This exercise is meant to tease-out buried ideas.
  
  
• Mind Map.Start with a circle containing the words “my business name”. Draw a line off of the main circle with each new idea. A web of ideas will form during your brainstorming session.

Naming Tip

If you don’t love the name you choose the first time, you can set up aDBAlater. A DBA allows you to operate your business under a different name without doing a full legal name change.

12 Questions to Ask When Choosing a Brand Name

Now that you’ve come up with name choices, it’s time to think about some important tips for naming a business.

12 Important Questions to Ask Yourself:

1. Is my name simple?
2. How does the name sound when I say it out loud?
3. Is the name easy to pronounce and spell and does the acronym look ok?
4. Is my business name shorter rather than longer?
5. Did I include a geographic location in my name? Usually, you shouldn't.
6. What do other people think of the name?
7. How does the name compare to other business names in the industry?
8. Does the name convey my mission as a business?
9. Did I avoid trends?
10. Does my name contain obscure words?
11. Is my name too narrow or too literal?
12. Is my name memorable?

CONSIDER USING A DBA TO BRAND OR REBRAND YOUR BUSINESS

In Alabama, a DBA (doing business as) is known as a trade name. An Alabama trade name allows you to use a name other than your business’s legal name.

If you don’t love the name you pick the first time or if things change that make your name obsolete, you can usually create a DBA name and legally operate under a new name.

DBA For Your Business Structure

Owners of formal business types like LLCs and Corporations sometimes choose to brand their businesses with a DBA. Most sole proprietors and general partnerships need to use a DBA to create a brand other than their surnames.

To learn more about DBAs in Alabama, visit ourHow to File a DBA in Alabama.

After you get your business name, your next step is getting a unique logo. Get your unique logo using our freeLogo Maker.

Federal Trademark Search

Next, a quick search on theU.S. Trademark Electronic Search Systemwill tell you whether someone else has already trademarked your name. Once you know the name is available, you can choose to apply for a trademark for your business although the cost is sometimes too high for a startup or fledgling business.

Regardless of whether you will be registering, it’s good to know if your name is already taken.

To learn more about trademarks and the steps you will need to get one, read ourHow to Trademark Your Businessarticle.

Alabama Quick Links

• Alabama Business Entity Records
• Alabama SOS LLC Names
• Alabama Name Reservation Services