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A Business-First Approach To The Practice Of Law

How can the wrong business name invite litigation?

| Dec 10, 2020 | Business Law |

Putting in the time and effort to work out your business structure and leadership organization can do a lot to prevent other parties from litigating you. As you form your company in Florida, one thing you should not neglect is carefully picking out its name. 

Consider whether a business name is legally viable, or you may have to change it or risk fines and penalties. 

Someone else owns it

First, you should conduct some research to make sure that your preferred name is available. It is possible another business in the state may have already taken it. If you choose one that is already in use, the other company may sue you, particularly if your goods and services are the same as those it offers. 

Another company trademarked it

You could also have problems with a business that does not operate in Florida. Forbes explains that a company in any part of the United States may trademark its business name. Even if the trademarking company resides somewhere farther away like Oregon, it could still take action such as sending a cease and desist letter to compel you to stop using the name. Litigation may follow if you do not comply. 

It clashes with law

Your company’s name will also depend on your business structure. There are certain words and characters that you may not use because they may misrepresent what your business is. For instance, if you wish to form a limited liability company, you cannot use the word “incorporated” because it may imply that your business is a corporation. Conversely, you must use words and abbreviations such as “LLC” or “Limited Liability Company” as part of your name if you create an LLC.