Entity Formation and Name Similarity
The merger of independent organizations occurs when they unite assets and liabilities to form a new entity, jointly developing an activity under the same name, structure and objective. Your business name should communicate values while being easy to read and understand. Co-owners can decide to include both names or neither.
Two businesses in different states can have identical names since naming rules are limited to one state. However, using the same name as another business is typically not acceptable when you sell different products/services in the same industry; the name is used by a major national brand regardless of industry; or the other business registered trademarks first.
Doing Business As (DBA) and Trademarks
Many small businesses register a "doing business as" (DBA) name before registering a trademark or using the name. Most states do not allow two businesses to use the same DBA, causing confusion especially when in the same industry.
If businesses with the same or similar names operate in overlapping markets, conflicts are typically handled through legal proceedings. If businesses are in different industries or locations, consumers likely wouldn’t confuse the two so having the same name is typically not an issue. If in the same industry and location, legal clarity would be needed. The first company to use and register a name can argue ownership rights, especially if it also first trademarked the name.
Legal Considerations and Disputes
If your name likely causes confusion by being the same or like another business name, you cannot use that name. Once your business is formed, your state generally won’t allow another company to register an identical or very similar name.
Either through coincidence or ulterior motives, it is possible for two companies to have the same name. How did this happen? It could be a simple coincidence or for competitive purposes, for one company to mirror the success of another.
The name of a company is not necessarily a trademark. A company name is the legal identity of the company, while a brand is an advertising construct that identifies certain goods or services. In general, within the same jurisdiction, you cannot have two company names that are the same.
If someone else has taken your business name, can you file a trademark infringement claim? So, your company can have the same name as another company, and vice versa, with no claims of trademark infringement. However, if your business is using a company name that’s the same as another incorporated company, there could be grounds for a legal dispute, and you may not be able to legally use the business name. If someone is using your business name, showing proof that you trademarked the name could be enough to convince a company to choose something else.