Unformatted text preview: ounty with that name. Details will vary depending on which state and county you’re in. CHAPTER 4: STARTING • A BUSINESS 4.3 The third level is the corporation, regardless of its various corporate entities. Whether they are
S Corporations, C Corporations, LLCs, or whatever, a corporation is registered at the state level
and only one can have the same name in the same state. However, there is no guarantee that
there won’t be many businesses registered as McDonald’s Hardware Store in several counties
in a state, and a corporation registered as McDonald’s Hardware Corporation. This kind of
To establish a corporation, you can use some of the national services such as the Company
Corporation (www.corporate.com) or a local attorney. The corporate forms will go to the state,
and details will depend on which state you’re in. Even though duplicate business names are possible and quite common, you do still have the right to
protect and defend your own business name once you’ve built the business around it. The key to this
is the real or perceived confusion in the mind of the customer. As we said above, one John Smith can
sue another John Smith for purposely confusing their identities. So too, McDonald’s Hamburgers can
and should sue anybody who starts a new restaurant named McDonald’s serving any fast foods.
On this point, when one business is confused with another, being ﬁrst matters. When somebody tries
to establish a second McDonald’s Hardware where it would confuse people with the ﬁrst, then the
ﬁrst McDonald’s has a legal right to prevent it. If the second store puts up a sign, then the ﬁrst store
should take quick legal action to stop it. The longer the ﬁrst store ignores the second, the better the
case of the second store.
When the whole mess goes to court, the ﬁrst one to use the name is likely to win, but if the ﬁrst one
sat quietly while the other one built the name, then there is more doubt. An existing business should...
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This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.
- Winter '09