This article will assist entrepreneurs in choosing a business or company name. They will learn the difference between corporate and company names versus service marks and trade names and why it may be possible to obtain a corporate name that cannot be used as the name of the businesss owned by the corporation. Most business people make the error of assuming that if they are able to reserve a corporate name with the Secretary of State's office of their State of incorporation that they may safely use that name in the operation of their business. That is not true.
Corporations are legal entities.
Service marks are marks, such as logos, that are associated with a service. Frequently, the corporate name for a company is also used as a service mark. Conversely, a corporation's name may differ from its service marks. The purpose of laws relating to service marks is to protect customers from being confused concerning the sources of goods being purchased or services being provided and, in some circumstances, to protect the owner of a service mark from certain activities by others which would likely diminish the value of the mark or the reputation of the company. In making the determination of whether or not to permit incorporation under a particular name, the staff workers at the offices of the Secretaries of State of the various states are required to assure that the name requested is not reserved for and has not been issued to any other company for use as a corporate name in that state.