What's in a name?

It begins with an idea that you can't stop thinking about. Eventually, after discussions with friends and family and many hours working with spreadsheets or a calculator, the idea becomes a decision to start a business.

Once you have made that decision there are suddenly many more things to think about, with the first one being a name under which to trade. Even if you already have one, are you sure that you have the right to use it?

If you have opted to form a limited company, you will find out quickly enough when you try to register your name with Companies' House. If it's already in use, you can't have it. If, on the other hand, you are beginning as a sole trader or partnership and intend to remain that way, you only have two other factors to think about:

1. You can use the same name that someone else is using provided that your businesses are clearly dissimilar in the service or products that you provide. In other words you can be called Kellogg's Carpets if you can show that you have a legitimate claim on the name Kellogg (in that it is your name). Were you to be retailing food, however, then using 'Kellogg's Foods' would find you facing a legal claim against you that you were 'passing off' your business as being connected with the Kellogg's that we all know so well. There have been conflicts; between Kwik Save and a number of 'Kwicker Savers'; Planet24 (makers of 'The Big Breakfast') were quick to pursue cafes that snaffled the name.

2. Will you want a web site? If you do, can you secure a relevant domain name? If you can, should you grab all of those that are available? For instance, Abacus.com is the website of a financial services group, whereas Abacus.co.uk is the cyber-home of an electronic components distributor. Abacus.org (.org used to be the domain for non-profit making organisations, such as charities) is a supplier of computer hardware, software and related services. If someone remembered Abacus, but forgot the domain name, they may become frustrated if their first attempt returns the wrong result and go elsewhere so think about more than one name if your web site is core to the business.

3. If your intention is to provide services, particularly to other businesses, remember that they will expect you to have Terms and Conditions of business in place. Ts & Cs lay out clearly what you expect to be responsible for and what is expected from your client for you to be able to complete any contract you enter into. Remember if you are using other businesses' services to provide yours then you will need to abide by their terms and conditions and have them reflected in yours too.

4. If you form a business other than as a limited company, you have three months within which to register it with the Inland Revenue. You will be responsible for any National Insurance and tax liabilities, so keep accurate records of accounts from day one. Once you register a limited company Companies House report this to the Inland Revenue for you!

5. Advertising material is an important part of building a business, but you will have to consider the copyright of any images that you use. Using an image that belongs to someone else can be costly after you have placed it on your web site and in 10,000 brochures. Much better to buy the rights to an image or to own those rights than get your business moving and on its feet only to be hit by a claim just as things are taking off.

Sue McGaughran is CEO at Lime One Ltd, which specialises in legal consultancy for small businesses, as well as other related services. For more information, please visit http://www.limeone.com/.

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