Yes. State laws (including California and Delaware) generally restrict what names an be used to register a new business:
- The names must not be the same, similar to, or deceptively similar to an existing business
o Capitalization or upper/lower case letters do not count when distinguishing your business name from another business’s name
- Accents and non-English characters are not recognized
- Supercript and sub-script characters are not recognized and are treated as standard letters/numbers
- The name must not be likely to mislead the public
o For example, using “Los Angeles Arts Development Agency” implies that the entity is affiliated with a governmental office, department, or agency. This would be impermissible.
If the correct suffix is not used after the new business’s name, the Secretary of State will reject the founder’s attempt to incorporate the business.
In addition to the above, the new founder should also be aware of potential trade name infringement matters, which occur when a new business is formed that is similar to an existing business in the same or similar geographic area, or a potential trademark violation, if a competing business’s name is protected by a federal or state trademark. For information on trade name infringement and trademark infringement matters, please check out our article on that subject here.
[title size=2]Related Formation FAQs[/title]
- Probate Litigation Risks in Blended Families and Second Marriages: Why Estate Disputes Are Often Predictable Rather Than Unexpected
- Workplace Injury Reporting Requirements: What Employers Need to Know to Minimize Risk
- Estate Planning After the 2026 Federal Estate Tax Exemption Increase: Why High Exemptions Do Not Eliminate Planning Risk
- Latest New Rules for REITs and New REIT Disclosure Requirements Established by U.S. SEC in April 2024
- Why Every Workers’ Compensation Claim Should Trigger an Employment Law Review
- Workplace Injuries in the Remote Work Era: What Employers Need to Know About Managing Risk Across Multiple States
- U.S. SEC Forms New Crypto Assets and Cyber Unit to Target Crypto Companies for Securities Violations
- New Colorado AI Regulation Act is the First Attempt Among U.S. States to Govern Artificial Intelligence
- Top Critical Tax Mistakes to Avoid for LLCs
- Recent Updates to Private Equity Regulations
[title size=2]Other FAQs[/title]
- Formation FAQs
- Stock Issuance FAQs
- Investment & Fundraising FAQs
- Intellectual Property FAQs
- Corporate Governance FAQs
- Employees & Labor FAQs
- Licensing & Permits FAQs
- Tax FAQs