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Dear Jessie:
The short answer is "yes, no problem." Now for the long answer
(article continued below ...)
Just to be clear, I believe what you are asking is if someone would be
allowed to incorporate a business with a particular name in one state if
another corporation with the same name existed in another state. The short
answer is yes. In order to form a corporation, most states only require that
the corporation's name be distinguishable (ie. different) from the names of
other corporations and/or other business entities that are registered in the
state of incorporation.
Once you have incorporated in your state, no other corporation could be
formed in your state with the same name for as long as your corporation is
in existence. However, this would not preclude someone from incorporating a
business with the same name in another state. It can and certainly does
happen, and I have personally come across many corporations (and limited
liability companies) with identical names in various states in my work as an
incorporation specialist.
This is a non-issue in most cases, as a corporation can be distinguished
by the state in which it is incorporated. However, in instances where a name
is trademarked it would not be entirely unheard of for a company to receive
a notice to cease and desist from infringing on a trademark and, in effect,
requiring the company to change its name. For this reason I would discourage
anyone from forming a corporation called "Coca-Cola Inc.", even if that name
were available in the state of incorporation! Again, I wouldn't call this a
common problem necessarily, but it does bring to mind a case in which
Starbucks went after the owner of a small-town coffee shop called Sambucks
Coffee, so named for the shop's owner, Sam Lundberg, whose maiden name was
Buck (the story was featured on ABC's 20/20; see
http://abcnews.go.com/2020/GiveMeABreak/story?id=1390867
.
To be sure that your proposed name would not be infringing on a
registered trademark, or if you are thinking about "going national" with
your business and wish to register your own trademark, you can visit the
United States Patent and Trademark Office's Web site at
http://www.uspto.gov .
Chrissie Mould
About the PowerHomeBiz.com Guide:
Chrissie
Mould has over a decade of experience in business administration and
startup business consulting. She has helped launch companies in multiple
industries and has managed corporate administration and governance for
public and private companies. She is an incorporation specialist with
MyNewVenture.com LLC. The company provides low-cost incorporation services
to entrepreneurs and small businesses. Visit
www.MyNewVenture.com to form
a corporation or LLC.
The opinions expressed in this column are those of the
author, not of PowerHomeBiz.com. Users should not treat the Guide's response as
legal, accounting, or professional advice as all answers are intended to be
general in nature. Such advice can only be properly given by qualified
professionals who are fully aware of a user's specific geographical areas or
circumstances, such as an attorney or accountant.
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