When you meet someone new, what’s the first thing you want to know about them? Their name. Your name is unique—it’s how people remember you.
The same goes for your Alabama business: choosing your name is the most important step of forming your company. Unfortunately, it’s not as simple as just picking the name you like best from a list. That works for babies, but not businesses. Alabama has several requirements that you’ll need to follow as you pick a name.
After brainstorming a business name either on your own or through a business naming tool, you’ll want to make sure it is available in your state. That’s where this guide comes in. We’ll walk you through how to use the tool, and we’ll dig into a few ways you can make your name a complete success. Let’s get started.
Compare the Best Alabama LLC Services
How to Use the Alabama Business Name Search Tool
You’ve picked a name. You’re pretty sure it’s the one. But before you seal the deal, you’ll need to ensure that it’s available for you to use. To do so, you’ll need to use Alabama’s search tool. They have a couple different options, but you’ll want to use the one called, Business Entity Search by Entity Name.
But we’ll be honest. The tool isn’t exactly the most intuitive. You might be thinking, What’s next? If you don’t know what to do, this name search can be downright overwhelming. But with a few simple pointers, it can be a cinch.
1) Type in the name you’re hoping to use
When we say name, we mean typing in the entire legal name, including the entity type designation. For example, if you’re going to call your shop Carla’s Cupcakes, you’d need to type in Carla’s Cupcakes, LLC or Carla’s Cupcakes Limited Liability Company.
2) Make sure the tool’s settings are correct
To get the most value out of your search, you’ll want to put the right settings on the Entity Name Search tool. For instance, you’ll want to leave “Place of Formation” and “Status” set at “All Records.” That way, the tool will check through all of its records, including names that have been reserved and names that are already in use. After that, you can hit “Search.”
3) Examine the search results
Now it’s time to look through the results. Do any exact matches appear? What about similar ones?
In Alabama, your name must be “distinguishable on the record.” In layman’s terms, that means your name cannot be the exact same as the name of another entity. It can’t be too similar to another name, either. Alabama has some specific rules about what makes a name different enough.
For example, the following factors are not enough to make a name distinguishable:
- An entity type designation alone: Co., Ltd., LLC, Inc,. etc
- Articles and conjunctions: a, an, the, and, etc.
- Making one word singular or plural
- Punctuation, abbreviations, symbols, etc.
Basically, your Alabama business name must be different thanks to a substantial word, not a tiny one like an article or a plural one.
If there aren’t any exact matches to your desired name—and it’s not too similar to a name that’s already in use—your name is probably available to use.
Next Steps for Your Alabama Business Name
The steps we’ve listed above are just the legal requirements for an Alabama LLC name. But this is your business name we’re talking about. You don’t want to just “get by.” You want to go the extra mile and make sure your name is as great as your business concept. You want to protect it, too.
Let’s talk about what you can do to protect (and thrive with) the name you’ve chosen.
1) Double-check that your name meets state requirements
Alabama’s search tool will only tell you if your name is available to begin with. It won’t, however, tell you if your name complies with state laws for your entity type. Here are some rules to name by:
- Your name cannot include any words that sound as if you’re conducting activities that Alabama state law prohibits.
- Your name can include words that imply you’re working in a profession that requires an Alabama license—but only if you have an active license for that profession. The state requires you to verify that you have the appropriate license. So if you don’t have one, take care of that step first before naming your business.
- Your name must include an abbreviation or wording that designates your entity type. For example, you must follow “Carla’s Cupcakes” with “L.L.C.,” “Limited Liability Company,” or some other label that shows you’re an LLC. Other business types will need to include an appropriate designation.
2) Make sure that your name stands out
The search tool will help you ensure that your name is available in Alabama. It won’t tell you if there are similar names, though. It also won’t search names in other states. The search tool simply isn’t designed to do that.
We recommend that you also browse through local phone books and do a Google search with your name. Internet search engines pull up results that are close matches to the terms you enter. That includes similar names and businesses in other states. For example, going back to our “Carla’s Cupcakes” example, Google pulls up a hit for a cupcake shop in Virginia.
If that happened to you, it wouldn’t be a make-or-break issue right away. After all, you’re just focused on Alabama results right now. That said, if you ever wanted to expand into other states later on, then you might encounter problems. Plus, having a truly unique name is a great selling point.
3) Make sure you like the name you’ve chosen
This might seem like an obvious one, but you don’t want to overlook it. You should like your business’s name. You should be proud to say it out loud, glad to write it down, excited when you hear someone say it…you get the idea.
Yes, you’re eager to start your business. But don’t get so excited that you settle on a lackluster name that makes you think, “meh.” If you don’t like the name, odds are your customers won’t, either.
A lot of guides will tell you to make sure your name is easy to say, easy to spell, memorable, and gives your customers a clear picture of what they can expect from your business. And those are all true tidbits of advice. Follow them. But at the end of the day, we think it’s important to pick a name that you like.
4) Protect your chosen name
By now, you’ve put in a lot of work to craft the perfect name for your business. Let’s make sure that work doesn’t go to waste. Alabama gives you two methods to protect your name, and you can pick one or the other—not both.
For starters, you could file a Name Reservation Request Form. There’s a $25 fee for this filing, but it gives you one year of exclusive use of your name without actually commencing your business. This is the perfect option if you’ve come up with an ideal name but you’re not quite ready to form your business yet.
But if you are all set to form your business, then you should go ahead and file the Certificate of Formation instead. This one has a $200 filing fee, but it actually creates your business. And once your business is created, your name is protected, too.
5) Get a DBA or Trade Name (Optional)
The most important name for your business is your legal name; it’s the name you’ll fill in on your Certificate of Formation. But many businesses choose to have a second name, often called a DBA or trade name. For instance, you might want to offer a second product line without renaming your entire business, or you just found a new nickname you like. Technically, you can just begin using a trade name (provided the trade name doesn’t infringe on an entity’s legal name).
That said, there is an advantage to registering your trade name. In Alabama, registering a trade name gives you exclusive use of that name. And it’s a pretty cheap and straightforward registration, too. Simply fill out and submit an Application to Register or Renew Trademark, Service Mark, or Trade Name.
Want more info? Get the full scoop on registering a trade name here.
Next Steps – Getting Started
We’ve gone into a lot of detail about searching for an Alabama business name in this guide, but here’s the deal: choosing an LLC name is just one step in the much bigger process of starting a business.
If you’re feeling a bit overwhelmed by all that goes into it, don’t panic. We’re here to help. You can catch the full guide to set up an Alabama LLC, but here’s the fly-by version:
Choose a business name
Every business in Alabama needs a name that’s both catchy and gives potential clients a good idea what the business does. The name also needs to be unique—both for legal reasons and so your business stands out from the competition.
Appoint your registered agent
Whether you elect to use a private Alabama registered agent, serve as your own, or you hire a service like the one we’ve listed here, you can’t skip this step. Without a registered agent, you won’t become a legitimate, registered entity.
File your formation documents
If you’re forming an LLC, you’ll need to file the Articles of Organization; corporations file the Articles of Incorporation. Once you fill it out and file it, this document is what officially forms your business in the state. There is a $100 filing fee for corporations, and LLCs will pay $100 to the Secretary of State and then at least $50 to their local probate judge. If you need help with this step, there are plenty of good Alabama LLC services online.
Beyond that, there are plenty of ongoing costs and maintenance requirements. We won’t go into a ton of detail here, though. Your registered agent (or online registered agent service) will help you keep tabs.
Conclusion
Pro Tip: If you have found the perfect business name and would like to begin the process of registering your business with the state, there are a lot of business formation services—like LegalZoom and Zen Business—that can do it for you. Plus, many of them also offer a free registered agent service when you set your business up through their platform.
Conducting a business name search is an important part of forming your business in Alabama. The search saves you time and helps you set up a name that makes your business stand out. We hope this guide made it simple to name your business.