Reservation Of Corporate Name in United States

Practical Information

Note: Some of this information was last updated in 1982

Deciding on a corporation’s name is a serious matter, to which the incorporators and the lawyer give careful consideration. All of the states require that a corporation’s name should indicate that it is a corporation by the use of company, association, incorporated, or similar words or abbreviations of them. Also, the majority of the states will not permit the use of the word bank or trust in a name of a corporation unless it is a banking institution. The chief importance of a name to the incorporators is that, as a business develops, its name acquires a value in itself, representing to a great extent the goodwill (in U.S. law) of the company. The state laws and the courts generally protect the corporation’s exclusive right to the use of its name. The state official will not accept for filing a certificate (in U.S. law) of Incorporation, if the name of the proposed corporation so closely resembles that of a corporation existing in the state that deception or confusion might result. Therefore, the lawyer will tell you to find out if the choice of name is available, and, if so, to reserve it.

(Revised by Ann De Vries)

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