Purchasing a business name can mean several different things: registering a new name with your state, filing a “doing business as” (DBA) name, securing federal trademark protection, or buying an existing name from someone who already owns it. The path you take depends on whether the name is available and what level of protection you need. Here’s how each option works.
Decide What Kind of Name You Need
Before you spend any money, it helps to understand the three layers of business name ownership. Each serves a different purpose, and you may need more than one.
- Entity name: The formal name you register when you create a business structure like an LLC or corporation with your state. This prevents anyone else in that state from registering the same entity name.
- DBA (doing business as): Also called a trade name, fictitious name, or assumed name. A DBA lets you operate under a name that differs from your legal entity name or your personal name. It does not provide legal protection on its own, and multiple businesses in the same state can share the same DBA.
- Trademark: A federal registration through the U.S. Patent and Trademark Office (USPTO) that protects your brand name nationwide. This is the strongest form of name protection.
If you just need to open a business bank account and start operating, a DBA paired with a federal tax ID number (EIN) may be enough. If you want to prevent competitors from using your name, you’ll want an entity registration and likely a trademark as well.
Search for Name Availability
Start by checking whether your desired name is already taken. Run searches in three places:
- Your state’s business registry: Most states have a free online search tool through the secretary of state’s office. If someone already registered the exact name as an entity, you typically cannot use it.
- The USPTO trademark database: Search the Trademark Electronic Search System (TESS) to see if anyone holds a federal trademark on the name or something confusingly similar. The USPTO will refuse to register a name that conflicts with an existing trademark on related goods or services.
- Domain registrars: Check whether a matching .com or other domain is available. Even if you can register the business name with your state, discovering the domain is taken may influence your choice.
If the name is available across all three, you’re in a strong position. If it’s taken in one or more places, you’ll need to either choose a different name or negotiate a purchase from the current owner.
Register a New Business Name With Your State
When you form a business entity like an LLC or corporation, the name you include on your formation documents becomes your registered entity name. Most states will not allow you to register a name that’s already taken, and some require the name to reflect the type of business or include a specific suffix like “LLC” or “Inc.”
State filing fees for forming an LLC range widely, from $50 to $100 in lower-cost states up to $400 or more in states with higher fees or additional requirements like mandatory publication. If you’re not ready to form an entity yet, many states let you reserve a name for 60 to 120 days for a small fee, typically $10 to $50.
Filing a DBA Instead
If you’re a sole proprietor who wants to operate under something other than your personal name, or if your LLC wants to use a brand name that differs from its registered entity name, you’ll file a DBA. Requirements vary by location. Some states handle DBA registration at the state level, while others require you to file with your county or municipality. The cost is generally modest, often under $100, though the exact amount and renewal schedule depend on where you’re located.
Keep in mind that a DBA does not give you exclusive rights to a name. It simply puts the public on notice that you’re doing business under that name. For real protection, you need an entity registration, a trademark, or both.
Secure Federal Trademark Protection
Registering a trademark with the USPTO gives you the strongest nationwide claim to your business name. The process takes several months and involves multiple steps, but it’s worth pursuing if you plan to grow beyond a single local market.
Before filing, determine whether your name is even eligible. The USPTO will reject names that are generic (like “Computer Store” for a computer shop), purely descriptive without secondary meaning, or too similar to an existing trademark on related goods or services. Distinctive, unique names are the easiest to protect.
To file, you’ll create an account on USPTO.gov and submit your application through Trademark Center. You’ll need to identify the format of your mark (standard text, stylized design, or sound), list the specific goods or services you’ll use it with, and select your filing basis. If you’re already using the name in commerce, you’ll file based on current use. If you haven’t started using it yet, you’ll file an intent-to-use application.
After you submit, the USPTO assigns a serial number and forwards your application to an examining attorney. This attorney searches for conflicting trademarks, reviews your application for compliance, and either approves it or raises objections you’ll need to resolve. If approved, the mark is published in the Trademark Official Gazette, and any third party has 30 days to oppose it. Assuming no opposition, the mark proceeds to registration.
Once registered, you’ll need to file periodic maintenance documents to keep it active. Failing to file these on schedule will result in cancellation of your trademark.
Buy an Existing Business Name
If someone else already owns the name you want, whether as a trademark, a domain, or both, you can try to buy it. This involves direct negotiation or working through a broker.
Purchasing a Trademark
Trademarks can be transferred from one owner to another through a legal assignment. You’ll negotiate a purchase price directly with the current owner, then draft an assignment agreement that transfers all rights in the mark. The agreement should include the mark itself, its registration or application number, and the goodwill associated with it (a trademark assignment without goodwill can be invalidated).
Once the deal is done, record the transfer with the USPTO through their Assignment Center. Online filings are processed in less than a week; paper filings take about 20 days. After you receive a Notice of Recordation, allow about a week for the ownership update to appear in the trademark database. If it doesn’t update automatically, you may need to file a supplemental form depending on where the mark is in the registration process.
One restriction to know: if the trademark was filed on an intent-to-use basis and hasn’t yet been used in commerce, it can only be transferred to a business successor for the listed goods or services. In all other cases, you’ll need to wait until a Statement of Use has been filed before the assignment can go through.
Purchasing a Domain Name
If the domain you want is already registered, visit the site to see if there’s a “for sale” notice or contact information. Many parked domains display a price or a link to make an offer. If not, you have a few options:
- Make a direct offer through the registrar: Many registrars let you submit an anonymous offer to the current domain owner. The registrar passes it along, and the owner can accept, reject, or counter.
- Use a domain broker: Services like DomainAgents, Afternic, and Sedo employ professional brokers who negotiate on your behalf. This keeps your identity confidential, which can be helpful if the seller might raise the price knowing a business wants the name.
- Check domain auction sites: Platforms like Flippa and Afternic list domains for sale, sometimes with buy-it-now pricing and sometimes through bidding.
For any domain purchase, use an escrow service to protect both parties. Most major registrars and marketplaces offer built-in escrow, holding the buyer’s payment until the domain transfer is verified. Once payment clears, the seller initiates the domain transfer, which moves the registration into your account at your chosen registrar. This is separate from the ownership transfer itself, which updates the registrant contact information to your name and details.
Domain prices range from a few hundred dollars for less-popular names to tens of thousands (or more) for short, memorable .com names. There’s no standard pricing formula. It comes down to what the seller is willing to accept and what the name is worth to your business.
Ongoing Costs to Keep Your Name
Securing a business name isn’t a one-time expense. Most states require annual report filings with fees ranging from $10 to $300. If you use a professional registered agent service, expect $100 to $300 per year. DBA registrations typically need to be renewed every few years, depending on local rules. Domain names renew annually, usually for $10 to $20 per year for standard extensions. And federal trademarks require maintenance filings at specific intervals to stay active.
Missing a renewal deadline can have real consequences. States may administratively dissolve your LLC or revoke your DBA, someone else could register the domain you let lapse, and the USPTO will cancel a trademark if you skip a required filing. Set calendar reminders for every renewal date tied to your business name so you don’t lose what you’ve paid to secure.