Difference Between Business Name and Trademark

What is the difference between a business name and a trademark? To answer this question, we will be discussing all you need to know about a trademark and business name. Registering your company’s label doesn’t give you all the rights to it. In this piece, you will learn how to get the exclusive rights of a business. You will also learn more valuable information. Let’s begin.

All You Need to Know About a Business Name?

A business name is simply the name that you give to your enterprise. It is the first and significant step to ensure your company is on the right path. It helps potential customers quickly identify with your brand. Your company title should be different from other companies, trademarks, and associations.

There are several ways you can come up with your company’s title. Keep in mind that you must take it through the proper channels. This is so as it can be considered a legal business.

To set up your enterprise, you must get it registered. The secretary of your state is in charge of registering any business venture in that state. He/she would also provide you with the proper tools to ensure your setup is legal and ready for operation. The link here has more tips on setting up your business for success.

Registering a Company Title Within a State

When you request a venture, your secretary of state will check your application. The check is to ensure that the names within their database don’t match your suggested name. With this, you can have a bit of assurance that you are free to use your company name within your state.

You can also register your company with a corporation or LLC. But this might not be needed. When registering your company label, the secretary only considers one thing. They do not think your logo or branding; only the name is essential.

The state you are operating your company will provide your requirements to complete the full authorization. Different states have their own rules as to what constitutes similar company titles.

Some states might allow a few spelling changes, while others do not. For example, your business is titled “Kelley’s Beauty Salon,” while another is titled “Kelly’s Beauty Salon.” Some states might allow this, while others would not.

How is my Business Name Protected?

A sole proprietorship business or a trading partnership will get protection for the title in the county where the company is located. Economic associations and limited companies will get name protection countrywide.

You get exclusive rights if you have registered the brand of that business. This would give you proper use of the titles and brands of your setup.

When naming your enterprise, there are things you have to consider. You can consider letter combos and business words. For example, using a label like AZ music store. This is a combination of letters and your industry related words.

You can also consider fantasy words. Something like “Leoman,” you can even go further and combine fantasy words with business words. For example, Leoman workshop. This is a combination of both.

You can also opt for a more personalized touch. With this, you will go with a personal name combined with your industry—something like Mikes’ laundromat. Geographical names are something most people still use. However, it isn’t the best option since it is limiting to a geographical location. It wouldn’t help to expand your enterprise. Need Help with your branding?

What is a Trademark?

A trademark is what distinguishes your company’s brand and services from your competition. The trademark usually consists of one or two words. It also comprises a graphic symbol, product, labeling, jingles, or sounds.

You are responsible for choosing your trademark. You just have to be creative when selecting yours. It is an excellent idea to use fictitious words for trademark. This will increase the chances of it being unique and standout. Also, you can bet that no one would have something similar to yours.

What Are the Benefits of Registering a Trademark?

Registering a trademark has its perks. Below are a few of them:

Exclusive Rights

 Owing a trademark means that you have exclusive rights over it. It means that you have full authorization over it and can stop others from using it. If you find out someone else is using yours, you have the power to sue.

Distinguishes Your Product

 Your trademark makes it easier for potential clients to find your brand. It makes your brand and product identity different from organizations in your niche. It reflects your brand, your purpose, and it serves as a commercial tool.

Establishes Trust and Goodwill

 Your trademark will build trust among your customers. It tells them that you’re a legal entity and would strive to keep it as such. This will, in turn, bring you more customers and help retain them.

It Reveals Your Brand’s Quality

Your trademark tells the audience your brand’s quality. Most customers attach your brand’s quality with your company name and trademark. There are useful tips on building a quality brand.

Protects Your Enterprise Against Infringement

No one else can use the logo, jingle, or label you have registered under your trademark. If there is a case when someone else does so, you are protected. You have the right to stop someone else from using your label and trademarks.

Protects Your Enterprise for a Very Long Time

 Once you get your trademark registered, you renew it after ten years. And you do so at a low cost.


The trademark and company names are different. However, they are both critical in securing your enterprise. Registering both of them will ensure you have exclusive rights to your business.

Atif Mallo

Atif Mallo is a freelance blogger with huge interest in technology, science, life hacks and health. He loves coffee, cheesecake and chess. Drop a line in comments to leave feedback for him.

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