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What to know about registering a business

On Behalf of | Aug 20, 2021 | Business Formation

Starting a new business requires action beyond coming up with a product or service idea and putting it to market. One such step that business owners take includes registering their business names.

Understanding business name registration may help business owners protect their brands and good names.

Do all businesses have to register names?

According to the Oregon secretary of state office, not all startup companies need to register business names. If a business name includes each owner’s given name or initials and last name, then the business does not need its name registered with the state. For example, a business called Jane Doe Interiors does not require registration. However, if Ms. Doe named her business Janey D Interiors, she would need to register the assumed business name.

Why should a business register its name?

Registering a business name offers several benefits. Registration of a business name may help establish the name and brand with other businesses and the public. Having a registered name may also aid in acquiring business licenses, opening banking accounts and handling other business-related matters. Doing business with a registered name may also give business owners legal standing to defend or pursue court actions.

Does registering a name mean a business can legally use it?

According to the Oregon secretary of state office, registration of a business name does not automatically grant a business the right to operate under that name. For instance, a business may register under the name Starbucks Coffee House. However, the popular chain may assert its right to the name and pursue legal action to stop the business from operating under that name.

Taking the necessary steps when starting, such as registering an assumed name, may help business owners prevent potential issues down the road.

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