Did you know that one of the reasons a small-business owner incorporates or forms a limited-liability company (LLC) is name protection?
Think about it: You do your research, you decide to start a business, and you pick a company name that is just right. However, you skip the step of incorporating. Two years later, a competitor comes into town and uses the same name as your business. Your competitor incorporates or forms an LLC with that name in the state in which he is conducting business (which is the same state as you!). Now, your competitor can legally use your business name in the state where he incorporated, even though you were there first.
In most states, other business owners won’t file your exact corporate or LLC name in the same state if the name already exists and is in good standing. This is why incorporating or forming an LLC is important to your business. You protect the name you created for your company without worrying that someone else may try to register it with the Secretary of State’s office in your state. Don’t let anyone else—especially competitors—take your name. Consider the benefit of name protection and incorporate your business.
Visit “Incorporate Your Business” to learn more about the benefits of incorporating.
The Company Corporation® has been helping small-business owners incorporate for more than 100 years. You can request a free business consultation with an Incorporation Expert from The Company Corporation® to answer any of your questions about forming your business.
The Company Corporation® furnished this article as part of a series that appears every Friday on Thesba.com. The Company Corporation® is a service company and does not provide legal or financial advice. For more information, visit Incorporate.com.