Competitors of Business Names in Other States

By August 24, 2020February 7th, 2022No Comments

Setting up a new business is an interesting yet overwhelming process, which can either turn out too good or too bad. To avoid the second option, we at Prestige Auditors have decided to educate our clients and customers on business topics which will help you, as business owners, have a better, enhanced business. The path leading you to success is long and fraught with challenges, which are easy to overcome once you have the knowledge and skills that are needed to survive in the world of business. One of those challenges is choosing a name for your future business. Even though it seems quite easy to choose a name, sometimes others are winning the race and choose “your” name before you do.

So, here’s the question: can you take a name, which is taken by another business owner in ANOTHER state? To find the answer, we should take into account the following:

  • Do you work in the same area?
  • Do you have the same geographic market? (separating the market into smaller and more controllable segments based on geographic location)
  • Who was the one who took the name first?
  • Who trademarked the name first?

Now, Let’s See When You Can Use A Name That is Already Taken in Another State!

  1. The industry is different

Look at the following example: you are willing to sell beauty products, which means you are going to work in the beauty industry. For your e-commerce or brick and mortar store, you came up with a seemingly original name, let’s say – “flames of care.” Another seller, who is operating in another state, took the exactly same name, but the industry is completely different. This seller is selling pet supplies, and providing thousands of customers with supplies for animal care.


  1. The geographic market is completely different
  2. Your name is not causing confusion for the customers.

For example, you want to sell pet supplies, and choose the name “loved fur.” At the same time, another person has a business of fur coats and jackets, won’t it be confusing? Of course, it will! So, make sure you don’t send people scratching their heads.


When Can’t You Use a Name That is Already Taken in Another State?

  1. As we already said, once you are working in different industries, it is okay to take the same or similar name. However, if you are working in the same industry, you are not allowed to take that name, even though you two are selling completely different products and/or services.
  2. Do you know Gucci, Nike or Chanel? You are not allowed to take their name and make it yours, even if you are working in completely different spheres. Imagine selling pet supplies under the name of Gucci; unacceptable!
  3. Maybe the other person came up with this idea earlier, because of which the process of trademarking already happened. If the trademark is already registered, you can’t take that name.

Now take your time, and do a simple research on names you are considering as options, after which, research again and conduct a trademark search. Once you find the perfect name which complies with all the requirements, register a trademark, and operate your profitable business without a hitch! Prestige Auditors is always with you, and will help you with the tiring process of setting up your ecommerce business startup, or any other business entity you wish to form. If you’ve decided on starting an eCommerce company or any other entity, feel free to contact our team at Prestige Auditors! We will help you with everything you decide!