Name protection Q

I

imported_Intel486

New member
I'd would like to start sticking a business name on my flyers and business cards. Tired of them just saying mobile detailing. I'm sure not having a business name on there is costing me business. But it'll be about 4 months until I make my business legal. ie. business license.



How can I start using the name I want and keep it protected so no one else can steal it?



Thanks



Edit: also, Also, are company slogans protected? if so, how do I do a search to see if the one I want is taken?
 
The easy way to create a business name is to use a ficticious name, aka, "doing business as" or dba. Any individual can operate a business under a ficticious name simply by publicly announcing the business, i.e., David Bynon doing business as Autopia Car Care. Is the name protected? Yes and no. The true business name is "David Bynon dba Autopia Car Care," so unless I'm infringing on another business called Autopia Car Care, there won't be a problem (that is, unless Disney trademarked the word "Autopia"... Oh Dear :shocked ).



Unless you plan to have a big business, there is little need to incorporate. Many people feel that there is extra protection from liability with a corporation, but that's not true unless your are truly detached. As a one or two person operation, you still have complete liability, in which case, you might as well operate as a sole proprietor. This also means, in most States, that a business license is not required. You may need a state tax/resale license.



If you create a company slogan, you need to trademark or service mark the slogan. Legally, you do not have to register your trademark, however, if you feel that it will be stolen or damage you if someone else uses the slogan, you might want to. It's not cheap. A trademark search alone will set you back a few hundred bucks. Again, it's not really worth the effort unless you are planning to be a big business.



You will notice that I try to apply a copyright notice to all of my work. Do the same. If you write a brochure, be sure to apply a copyright notice. If you use a slogan, apply a trademark (tm) notice. It just lets peopl know that you claim it.



db
 
Basically, what David says sounds correct to me, although I'm in Canada so our laws are slightly different.



The one thing I might add is that when you register your business you'll register a company name with your state (I assume - in Canada I register with my province). Although you have registered the name, this does necessarily give you the right to use that name. Sounds wierd, but if I register my business with the province as "Holy Cow Detailing", someone could come in after me and register a trademark with that name and I'd be SOL. If I don't register the trademark first, I'm at risk.



However, the likelihood of that happening, and the likelihood of someone even caring that I had the same name as them (unless they are running the same type of business in the same neigbourhood) is very minimal. As David said, unless you think you'll be doing big business and sinking major marketing dollars into building your brand name, I wouldn't spend the money.



So, in your case I'd just go ahead and pick a name and use it. Unless you get a complaint, which is unlikely, you'll be fine. Just do a search through your phone book and ensure that there are no other detailers in your area using the name.



Davids comments regarding incorporation are also accurate - a 1-man corporation can't hide from its debts if things go bad. Might as well stay as a sole proprietor and save the cash.



Anyway, feel free to ask away if you have any more questions. I think there's probably some good business minds here that could give you a helping hand getting your business started!
 
Better add this.



For a DBA name do I have to register anything? or just start putting it on flyers?



Also, what classifies what you are doing as a hobby vs. a business?
 
As for the "dba" designation, I'm really not sure. I haven't heard of that up in Canada. Or maybe I just don't know it as "dba".



As for hobby vs business. Well, if you are charging money for providing a product or service, you're probably a business in the eyes of your state. You may technically need to charge sales tax if your state law requires it. You will need to report the revenue as income. However, there is a real grey area there. If you just detail a few friends cars in exchange for a case of beer, the government isn't going to give a rats arse. But what if you charge them $100 each, and you do their cars every other month? The government most likely still wouldn't care. But what if you start taking on more customers, and next thing you know you're 3 or 4 cars every weekend? Now you're starting to bring in some significant extra cash, and you could theoretically get busted if you don't charge sales tax (if required by your state) and don't report the money as income.



Hopefully that helps!
 
mp5_toronto said:
As for hobby vs business. Well, if you are charging money for providing a product or service, you're probably a business in the eyes of your state. You may technically need to charge sales tax if your state law requires it. You will need to report the revenue as income. However, there is a real grey area there. If you just detail a few friends cars in exchange for a case of beer, the government isn't going to give a rats arse. But what if you charge them $100 each, and you do their cars every other month? The government most likely still wouldn't care. But what if you start taking on more customers, and next thing you know you're 3 or 4 cars every weekend? Now you're starting to bring in some significant extra cash, and you could theoretically get busted if you don't charge sales tax (if required by your state) and don't report the money as income.

Click to expand...



In the US if you make below a certain amount in a year it is considered a Hobby and not a business. I just dont' know what those amounts are.
 
Pick a name and start using it whenever your ready. One way to look for usage of the name is to check out internet registration sites. Type in the name you come up with and see if it is in use. This works for any name that has been registered on the net. The key is first usage and the ability to prove that you were the first to use the name. We started to use the name Masterfinish back in 1983 and I still have the handwritten invoices to prove when we started to use the name. In 1988 I registered the name with the help of an attorney. We now have what is called an uncontestable national registration of the name. That gives us certain legal enforcement rights if anyone tried to copy or use the name in anyway. This may not be important to a small business, but if you plan to stay in the business for the long haul and possibly expand, it becomes a viable part of the business plan. It takes about a year to go through the process as there is a very detailed search done to make sure that not only is the name available but that it is not close enough to any other name that it could cause confusion. All this research and paperwork must be submitted to the feds and then they research the name also. If there is something close as was the case with our name we were required to contact the business that had a similar name and create a written agreement between us that we felt there would be no confusion or problems. This was then handed over to the feds which then okayed our registration and sent us the documents showing we were official. At the ten year mark you are required to update the registration just to show the feds that the name is still in use and not available. Once that update is sent in we were granted the status of owning an uncontestable registered name.

In your second question you asked whether your a business or hobby. Most hobbiest do not write invoices. Basically if you act like a business the law states you are a business and will enforce whatever local, state and federal rules that may apply. This of course is only if they find out. You could get lucky for a long time or get turned in by a jealous competitor. It may also be possible that if your mobile, a code enforcement official may stop if they see you working and ask you for your business license and permits if required. If you work out of your garage and a neighbor decides they don't like whats going on they could turn you in too.

For the most part you will find that a service type business does not have to charge or collect taxes. In detailing it would be rare for anyone to charge seperately for the chemicals used and labor time. Usually these materials are just considered a cost of doing business and hopefully you charge enough to cover your costs. Your visibilty, your cards and how you treat the business will decide as to whether your a hobbyist or a business.

Good luck!

I have made a nice living cleaning cars since 1971. You can too if your serious.
 
In the county in which I live in Georgia, if you make any money at all doing something, whether you consider it a business or hobby, the government considers it a business and therefore a business license is required. They are not too expensive here, $85 to start and it can go up with the amount of money you make each year.



It was explained to me that the real reason to get a business license is that if someone reneges on paying you, you have no recourse if you have no license. Since the work was done as a business, you should have a license in the eyes of the court. If you don't have a license, you will not win in the courtroom.



As always, things may be different in your location and I am sure that it will be in NO.



On a side note, I took a business law class one time and we always had a saying when we talked about certain laws. They pertain to all the states in the United States...except for Louisiana. They have their own laws there. Great food though!!!
 
Louisiana Laws are based on the Nepoleanic code or something like that....We do have the finest bribe takers in the world though :D
 
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