Determining Company Names When Starting a Business in America: Current Laws and Professional Guide

Starting a company in the United States is a process full of opportunities yet involves complex legal procedures for entrepreneurs. Choosing a company name is one of the most critical steps in this journey because this name forms your brand identity, provides first contact with customers, and directly affects your business's long-term success. Due to the federal structure of the US, each state has its own laws, and the naming process shows significant differences from state to state. In this article, we will examine the company naming process in detail, considering current laws and practices as of 2025, and present the advantages of getting professional support.

Importance of Company Name Selection and Basic Principles

Company name selection is not just a formality but also a strategic decision. When establishing a company in the US, having a unique and distinctive name is a fundamental requirement. It should not cause confusion with a previously registered name in the same state. For example, if you chose "Nova Solutions LLC" and "Nova Solutions Corp." is registered in the state, this name is usually rejected. Small additions or changes (e.g., "Inc." instead of "LLC") do not provide sufficient differentiation. This complex verification process should be comprehensively conducted by a professional service provider.

Company name selection is not just a legal process but also the beginning of the branding process. Website name, logo design, social media accounts, and brand ownership all depend on the name you choose. Therefore, it is critically important to subject the name to professional evaluation for both legal and commercial suitability.

Current Laws and State-Based Regulations

As of 2025, the company naming process in the US is subject to state laws, and there is no standard regulation at the federal level. Here are the current rules to consider:

  1. State Registration Requirement and Name Check:

    • Each state requires company names to be checked in the state database before registration. This complex process is performed in detail by professional service providers.
    • States like Wyoming and Nevada implemented AI-supported name check systems in 2025, changing the process, but using these systems requires technical expertise.

  2. Mandatory Extensions Based on Company Type:

    • You must add an extension to your name that clearly indicates your company type:
      • Corporations: "Incorporated" (Inc.), "Corporation" (Corp.), "Company" (Co.), "Limited" or similar abbreviations can be used. Some states also accept additional extensions like "Association", "Foundation" or "Institute".
      • Limited Liability Companies (LLC): "Limited Liability Company", "LLC" or "L.L.C." is mandatory.
      • Public Benefit Corporations: "Public Benefit Corporation", "PBC" or "P.B.C." is used.
    • While states like California provide flexibility in these extensions as of 2025, incorrect extension usage (e.g., an LLC using "Inc.") can lead to serious legal issues.

  3. Prohibited and Restricted Words:

    • Words like "Bank", "University", "College" or "Insurance" require special licenses or approval. For example, in Delaware, the word "Bank" cannot be used without permission from the Banking Commission.
    • Obscene, misleading, or words deemed inappropriate by state courts are also rejected.
    • If the name is in a language other than English, some states may request an English translation, which requires additional bureaucratic processes.

  4. Trademark Conflicts:

    • Even with state approval, the name must not conflict with a trademark registered with the US Patent and Trademark Office (USPTO). The USPTO's Trademark Electronic Search System (TESS) tool was revised in 2025, but still requires a professional eye for correct interpretation.

  5. Name Reservation and DBA:

    • Many states offer the ability to protect your chosen name for a certain period, but this process has different procedures according to states.
    • If you want to operate under a different business name, you need to register a "Doing Business As" (DBA). For example, while your official name is "XYZ Technologies LLC", you can use "XYZ Solutions" with DBA. This complex process requires professional support.

State-Specific Examples

  • Delaware: Known for business-friendly laws. Special approval required for words like "Bank" or "University" and the process is quite complex.
  • Wyoming: Offers income tax advantages but new online name check system contains technical challenges.
  • Nevada: While annual reporting burden seems low, name registration procedures involve complex processes.

Service Support in Company Name Selection Process

Advantages of getting support for a smooth company name selection process:

  1. Name Strategy Development:

    • Company formation services can provide name alternatives suitable for your business area and target audience, facilitating your selection process.

  2. Legal Research:

    • Service providers evaluate legal compliance and identify potential obstacles by conducting name searches in state databases and USPTO.

  3. Digital Presence Check:

    • Checking the availability of the chosen name for domain names and social media accounts helps create a consistent brand strategy.

  4. Name Reservation and Registration:

    • Company formation services manage the process of reserving the determined name and using it correctly in formation documents.

  5. Comprehensive Check:

    • Service providers ensure smooth process progression by checking your name's compliance with legal requirements across different states and at the federal level.

Conclusion

Determining a company name in the US is a process involving complex legal requirements. While digitalization has increased as of 2025, issues like uniqueness, prohibited words, and trademark conflicts still require serious expertise. Mistakes in name selection processes can delay your company's formation, lead to unexpected costs, or cause legal issues in the future.

Working with a company formation service saves time, reduces legal risks, and helps establish your company on solid foundations. Your company name is the cornerstone of your business; by getting the right support during the formation phase, you can focus on your business.

As Myopkit, we check the suitability of your chosen company name on your behalf for free and provide personalized guidance during the company name selection phase. Our experienced team is by your side in your journey of starting a company in America. You can connect to our live support section right away to receive professional consultation in any language and start your company formation process effortlessly.