Business Names - What's the big deal? | Amplio Business Solutions

Business Names – What's the big deal?

Posted 23 Jun 2009

Naming Your Business – Whats the big deal?

I will break this down into a few posts, mainly because there is a lot of material to cover.

Firstly, not all of us have the luxury of naming our own business, as we may have inherited a business and its name or purchased an existing business or franchise.

All of this means that there may be certain legal restrictions on the name you are using and if and when you can change it (if you wish to). This should all be covered in the purchase document including any time restrictions and the confirmation of the ability to transfer trading names across to your entity. If in doubt check with your lawyer and make sure you have got full access to the business name, registered business name, any trademarks and Intellectual Property rights that go along with the business.

With respect to a family business, you may not be in any rush to update the name. They work best in smaller communities and often have the reputation of being the place to go for “whatever it is you sell”. To change a name in this circumstance without any major reasons why could lead to your business suicide. By all means take the existing name and modernize the look of it, repaint the business, clean up the store etc, but the namesake will be one of the last remaining Goodwill factors in a business sale (down the track).

There are also considerations to be taken into account with the legacy of family and also with the business structure before changing anything. You will do best by sitting down with your Accounting and Legal advisers prior to any changes and thinking through the consequences of any changes. Capital gains tax, exposure to litigation etc should all be considered.

More tommorrow. John Burkhardt - Amplio Business Solutions

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