Can Companies have the Same Name?
Yes, you can have multiple businesses under one LLC, each under a different name. For most states, two businesses will not allow duplication to avoid confusion. However, if the businesses operate in different industries or regions, having similar names may be acceptable.
Registration and Usage of Business Names
- Business names are registered state-by-state.
- Using the same name as another business will typically not be acceptable when:
- You sell different products or services but operate within the same industry as another company.
- The name is in use by a major national brand, regardless of industry.
- The other business registered for trademarks before you did.
Ownership of Business Names
The first company to use and register a name has grounds to argue ownership. Trademark law aims to eliminate consumer confusion regarding names. By choosing the same name as another business, you risk being forced to change your name or pay damages.
Legal Aspects of Having Similar Names
- Business name can’t be registered if identical company name exists.
- Secretary of State will not permit exact name duplications to avoid confusion.
Trademark Rights and Lawsuits
- Trademark protection provides more security than a fictitious name statement.
- A trademark lawsuit requires proving registration, similar name usage, and customer confusion.
- Registering a trademark at federal level grants legal protections under trademark rights.
Handling Similar Business Names
If someone uses your name, showing proof of trademark registration could convince them to choose another name. Having the same name as another company can lead to difficulties in registering trademarks for your own business.