What's the best type of name for my business?

There's no one-size-fits-all formula for picking a great business name. The best name depends on a host of considerations -- some as obvious as the kind of business you do, others as unique as your own tastes and style. There are, however, a few guidelines that will steer you in the right direction. A good business name should:

• be distinctive
• be memorable
• be easily spelled and pronounced
• suggest the products or services you offer, and
• distinguish you from your competitors.

What issues should I keep in mind when picking a name for my business?

No doubt you'll spend hours brainstorming for a business name that represents your products or services -- a name that's both marketable and infused with personality. To help the creative process along, you might surf the Web, browse the dictionary, read trade magazines, and bounce ideas off of friends and colleagues. But as you hunt for the perfect name, keep three main questions in mind:

• Will your business name receive trademark protection?
• Is your proposed business name available?
• If your business will have a website, is a similar domain name available?

Plus, if you're starting a corporation, LLC, or limited partnership, you must comply with a few state rules for naming your business.

How do I find out if the business name I want is available?

You'll have to conduct a name and trademark search to make sure no one else is using the name you want to use (or a very similar name) to market similar products or services. You should also check with your county clerk's office to see whether your proposed name is already on the list of fictitious or assumed business names in your county. If you find that your chosen name (or a very similar one) is registered as a trademark, or is listed on a fictitious or assumed name register, you shouldn't use it.

If you're organizing your business as a corporation, LLC, or limited partnership, you must also make sure your business name isn't the same as that of an existing corporation, LLC, or limited partnership in your state. If a name that is identical or very similar to your proposed business name turns up in your state's database, you'll have to choose another.

What is a trademark?

A trademark (sometimes called simply a "mark") is any word, phrase, design, or symbol used to market a product or service. Technically, a mark used to market a service, rather than a product, is called a service mark, though the term "trademark" is commonly used for both types of marks because they refer to the same group of legal protections. Owners of trademarks have rights under both federal and state law that give them the power in many cases to prevent others from using the same or confusingly similar trademarks.

To make sure your proposed business name won't step on someone else's rights to an existing trademark, you'll have to do a trademark search. Also, when picking a business name, you should take care to choose a name that will be likely to receive trademark protection and then take steps to protect your business name as a trademark.

What is the "legal name" of my business?

The legal name of a business is the official name of the person or entity that owns a business. If you are the only owner of your business, then its legal name is simply your full name.

If your business is a general partnership, and you have a written partnership agreement that gives a name to the partnership, then that name is the legal name of the business. Otherwise, the legal name of a general partnership consists of the last names of the owners.

For limited partnerships, LLCs, and corporations, the legal name of the business is the name registered with the state filing office.

Your business's legal name will be required on all government forms and applications, and is particularly important to use on your application for a federal employer identification number.