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Obscenities won't pass muster with any state-level secretary of state's office when seeking approval for a new business name. But profanity isn't the only thing that will send entrepreneurs back to the drawing board when coming up with potential monikers.

The rules vary widely by state, but each has a list of restricted words and other guidelines that limit what business owners can name their enterprises or require extra approvals before a venture can move forward. And, of course, a state's blessing on a new business name isn't just nice to have. It's something business owners need to have as part of the legal process to form a new enterprise.

So, before you buy that domain name or develop that new business logo, consider these 10 words and phrases you may need to avoid.

1. Obscenities: These include George Carlin's “seven dirty words” and many more that have cropped up in our lexicon over the years. Business owners actually attempt to include these expressions in their entity names more than you might think, but with little luck. Secretary of State offices generally won't approve them. And don't think about trying to mask a curse word by replacing a letter with an “at” sign or other symbol. State officials won't allow those either.

2. Professional services: Many states won't let you imply that your business is offering a professional service unless you've received the license required to carry out the work. The state of New York might be the strictest when it comes to linking a business name with licensing. It has rigid rules on using words such as “accounting,” “architecture,” “chiropractic,” “dentists,” “dental,” “doctor,” “engineering” and “medical” in business names. If you want to include them, you better have the license.

3. 'University,' 'school,' 'college,' 'institute': Business owners often will need to prove they actually are opening up a school or college if they want to use these words in their names, particularly in the states of New York and Illinois. In Illinois, business owners will need approval from the state's Board of Higher Education. In New York, the approving agency is the Department of Education. The department, which also reviews other professional services, must review both the signed articles of incorporation and the professional license before a business name is finalized. Once the business is formed, the department must have received certified copies of the filed articles of incorporation to ensure its requirements were met.

4. 'Bank': Perhaps your last name is Bank, and you'd like to name your contracting company “Bank Builders.” Not so fast. In California, limited liability corporations simply can't have the word “bank” in the name. What's more, corporations will need approval from the Commissioner of Financial Institutions. Business owners must send a letter to the commissioner that details the name and provides a description of what the business will do. In Delaware, the state's Department of Banking must approve any name with “bank.” Business owners need to complete a questionnaire for the state banking commissioner, who then decides if the word can be used in the business name. If it's not a bank, the state typically won't approve it.

5. 'Trust': In general parlance, the word “trust” can have different meanings and can be used in different kinds of business names—“Mike's Baseball Card Trust,” for example, or an actual financial trust. In most states, to use the word, business owners will need to seek approval from the state banking or finance agency. In a few states, the word “trust” actually isn't allowed in any entity name. But in Florida, the word can be in any business name without approval.

6. 'Mortgage': Nevada is particularly careful with the way “mortgage” is used in business names. To use the word, you'll need approval from Nevada's Division of Mortgage Lending. If a business owner wants to form an entity in Nevada with “mortgage” in the name, but doesn't plan to do any business in the state, they'll need to provide a comprehensive statement with their plans.

7. 'Loan,' 'lend': Want to use the word “lend” in your business moniker? In Nevada, you'll need approval from the Division of Mortgage Lending. What happens if you change that word from “lend” to “loan”? You're free to start up as many entities as you'd like. There are no restrictions on “loan.” It's trickier in New York. There, you'll need approval for all loan-related words, including “loan,” “lending,” “loaner,” “loaning” and “loans.”

8. 'Erotic': In Delaware, don't even think about using this word, regardless of your business plans. The state simply doesn't allow the word in any business name.

9. 'Cemetery,' 'funeral': New Jersey officials won't let business owners include “cemetery” in a business name. But in Pennsylvania, “funeral” is fine, as long as you have approval from the state's Board of Funeral Directors.

10. Federal trademark considerations: Just because a secretary of state office has approved a business name, doesn't necessarily mean an entrepreneur can use it for commercial purposes. Federal trademarks protect a myriad of words such as “Olympic,” or even “Razorback,” restricting who can use them.

These are just 10 of the many rules and regulations across the country that guide businesses as they stake a claim for themselves in the marketplace. In some cases, the complex and complicated nature of the guidelines has forced some entrepreneurs to hit the brakes on their plans as they work to come up with yet another name. The delays can cost time and money.

Instead, working with an expert knowledgeable on your state's laws can speed the process and ensure that the name you choose is right for your business—and gets the approvals it needs.

 

Mark Williams is Customer Service Operations Director at Wolters Kluwer's CT Corporation.

browser windows

Obscenities won't pass muster with any state-level secretary of state's office when seeking approval for a new business name. But profanity isn't the only thing that will send entrepreneurs back to the drawing board when coming up with potential monikers.

The rules vary widely by state, but each has a list of restricted words and other guidelines that limit what business owners can name their enterprises or require extra approvals before a venture can move forward. And, of course, a state's blessing on a new business name isn't just nice to have. It's something business owners need to have as part of the legal process to form a new enterprise.

So, before you buy that domain name or develop that new business logo, consider these 10 words and phrases you may need to avoid.

1. Obscenities: These include George Carlin's “seven dirty words” and many more that have cropped up in our lexicon over the years. Business owners actually attempt to include these expressions in their entity names more than you might think, but with little luck. Secretary of State offices generally won't approve them. And don't think about trying to mask a curse word by replacing a letter with an “at” sign or other symbol. State officials won't allow those either.

2. Professional services: Many states won't let you imply that your business is offering a professional service unless you've received the license required to carry out the work. The state of New York might be the strictest when it comes to linking a business name with licensing. It has rigid rules on using words such as “accounting,” “architecture,” “chiropractic,” “dentists,” “dental,” “doctor,” “engineering” and “medical” in business names. If you want to include them, you better have the license.

3. 'University,' 'school,' 'college,' 'institute': Business owners often will need to prove they actually are opening up a school or college if they want to use these words in their names, particularly in the states of New York and Illinois. In Illinois, business owners will need approval from the state's Board of Higher Education. In New York, the approving agency is the Department of Education. The department, which also reviews other professional services, must review both the signed articles of incorporation and the professional license before a business name is finalized. Once the business is formed, the department must have received certified copies of the filed articles of incorporation to ensure its requirements were met.

4. 'Bank': Perhaps your last name is Bank, and you'd like to name your contracting company “Bank Builders.” Not so fast. In California, limited liability corporations simply can't have the word “bank” in the name. What's more, corporations will need approval from the Commissioner of Financial Institutions. Business owners must send a letter to the commissioner that details the name and provides a description of what the business will do. In Delaware, the state's Department of Banking must approve any name with “bank.” Business owners need to complete a questionnaire for the state banking commissioner, who then decides if the word can be used in the business name. If it's not a bank, the state typically won't approve it.

5. 'Trust': In general parlance, the word “trust” can have different meanings and can be used in different kinds of business names—“Mike's Baseball Card Trust,” for example, or an actual financial trust. In most states, to use the word, business owners will need to seek approval from the state banking or finance agency. In a few states, the word “trust” actually isn't allowed in any entity name. But in Florida, the word can be in any business name without approval.

6. 'Mortgage': Nevada is particularly careful with the way “mortgage” is used in business names. To use the word, you'll need approval from Nevada's Division of Mortgage Lending. If a business owner wants to form an entity in Nevada with “mortgage” in the name, but doesn't plan to do any business in the state, they'll need to provide a comprehensive statement with their plans.

7. 'Loan,' 'lend': Want to use the word “lend” in your business moniker? In Nevada, you'll need approval from the Division of Mortgage Lending. What happens if you change that word from “lend” to “loan”? You're free to start up as many entities as you'd like. There are no restrictions on “loan.” It's trickier in New York. There, you'll need approval for all loan-related words, including “loan,” “lending,” “loaner,” “loaning” and “loans.”

8. 'Erotic': In Delaware, don't even think about using this word, regardless of your business plans. The state simply doesn't allow the word in any business name.

9. 'Cemetery,' 'funeral': New Jersey officials won't let business owners include “cemetery” in a business name. But in Pennsylvania, “funeral” is fine, as long as you have approval from the state's Board of Funeral Directors.

10. Federal trademark considerations: Just because a secretary of state office has approved a business name, doesn't necessarily mean an entrepreneur can use it for commercial purposes. Federal trademarks protect a myriad of words such as “Olympic,” or even “Razorback,” restricting who can use them.

These are just 10 of the many rules and regulations across the country that guide businesses as they stake a claim for themselves in the marketplace. In some cases, the complex and complicated nature of the guidelines has forced some entrepreneurs to hit the brakes on their plans as they work to come up with yet another name. The delays can cost time and money.

Instead, working with an expert knowledgeable on your state's laws can speed the process and ensure that the name you choose is right for your business—and gets the approvals it needs.

 

Mark Williams is Customer Service Operations Director at Wolters Kluwer's CT Corporation.