Legal Considerations for Naming a California LLC or Corporation
Starting a new business requires many decisions. Choosing a name can be one of the most overwhelming. There are several legal issues to consider when naming a California limited liability company (LLC) or corporation.
Ensuring the Name is Distinguishable
California LLC and corporation names must be distinguishable from the name of any LLC or corporation authorized to conduct business in California.
The California Secretary of State (SOS) has a search function on its website that can be used to help determine if a name is distinguishable.
Avoiding Misleading the Public
The name of a California LLC or corporation must not be likely to mislead the public.
An LLC name needs to contain the words “Limited Liability Company” or the abbreviation “LLC” or “L.L.C.” (but “limited” and “company” can also be abbreviated to “Ltd.” and “Co.” respectively), and it cannot include the words bank, trust, trustee, incorporated, inc., corporation, corp., insurer, or insurance company.
California corporation names may not include the words bank, trust, trustee, or related words unless the Commissioner of Financial Protection and Innovation approves it.
Reserving a Name
LLC and corporation names can be reserved for a period of up to 60 days through the California Secretary of State’s website. But reserving a name does not guarantee the SOS will approve it. The SOS reviews names for compliance with California laws when the articles of incorporation are filed and not when a name is reserved.
Preventing Trademark Infringement
A trademark gives the owner of the mark the right to prevent others from adopting similar marks likely to cause consumer confusion.
Before settling on a name, it is important to conduct a trademark clearance search to determine whether the name may infringe on existing trademark rights. A trademark clearance search is performed by checking several different resources to determine if someone already owns the right to the mark.
A trademark clearance search includes checking:
· The USPTO trademark search system
· Trademark Official Gazette
· State trademark registries
· domain name registries
· Madrid Monitor
· Global Brand Database
· EUIPO
· TMview
· General internet searches to determine if someone is using the name in commerce.
The text above is intended for informational purposes only and is not legal advice. For advice tailored to your situation, please consult with an attorney.