Naming Your Business: Legal & Tax Considerations Every Entrepreneur Should Know
Choosing a name for your business may seem like the fun, creative part of starting a company. But behind the branding, there are also legal and tax considerations that can have long-lasting consequences. The name you choose can affect your liability, how the IRS and state agencies treat your business, and even your ability to claim certain deductions.
At Velin & Associates, Inc., we help entrepreneurs, professionals, and business owners — from YouTubers and Shopify sellers to doctors and dentists — make smart decisions from the very start. Here’s what you need to know about naming your business.
Legal Considerations: Protecting Your Business Name
Check for Availability
Before you invest in logos, websites, or business cards, make sure your chosen name isn’t already taken. This involves:
- Searching your state’s Secretary of State database to ensure the name isn’t registered by another company.
- Checking the U.S. Patent and Trademark Office (USPTO) for federal trademarks.
- Running a domain name search to secure your website address.
👉Example: A Shopify store owner naming their brand without checking could later face legal disputes, costing thousands in rebranding fees.
Consider Trademarks
If your business will build a brand — like a YouTuber, TikToker, or filmmaker — trademark protection may be crucial. A trademark can prevent others from using a confusingly similar name in the same industry.
👉 Example: A dentist opening a new practice should consider protecting the practice name with a trademark to build a recognizable brand in the community.
“Doing Business As” (DBA)
If you plan to operate under a name that’s different from your legal entity, you’ll need to file a DBA (Doing Business As) with your state or county.
👉 Example: If “Bright Smile Dental, LLC” wants to advertise under “Dr. Jones Family Dentistry,” a DBA filing is required.
Tax Considerations: How Your Name Ties Into the IRS
Business Structure Matters
The way you name your business often reflects its structure:
- Sole Proprietorship: Usually tied to your personal name (e.g., “Jane Smith Photography”). You can still use a DBA for branding.
- LLC or Corporation: Must include designations like “LLC,” “Inc.,” or “Corp.” depending on your state’s requirements.
👉 Example: An Amazon seller who operates as “John’s Online Deals, LLC” benefits from legal liability protection and separates business taxes from personal income.
EIN and IRS Matching
The IRS requires your business name to match exactly with your Employer Identification Number (EIN) records. Mismatched names can cause tax return rejections, delayed refunds, or compliance issues.
👉 Example: A filmmaker forming an LLC but filing taxes under a slightly different name could face processing delays with the IRS.
Deduction Opportunities
Your business name won’t directly give you deductions, but forming a legal entity under the right name can make tax planning easier. It separates personal vs. business expenses, which is essential for:
- Doctors and dentists deducting equipment or office space.
- YouTubers and TikTokers deducting cameras, software, and editing costs.
- Shopify and Amazon store owners deducting inventory and shipping costs.
With a formal business name and structure, deductions are cleaner, more defensible, and less likely to be challenged in an IRS audit.
Branding Meets Compliance
The ideal business name balances marketing appeal with legal compliance.
- Make it easy to remember and spell.
- Ensure it satisfies state and IRS requirements.
- Plan ahead — the name you choose today could stick with you for decades.
👉 Example: A high net worth individual launching multiple ventures may want separate LLCs with distinct names for liability and tax planning reasons.
How Velin & Associates Can Help
At Velin & Associates, Inc., we advise clients at every stage of business formation. Whether you’re a creator launching a personal brand, a doctor opening a medical practice, or an online entrepreneur starting a Shopify store, we help you:
- Choose the right business entity (LLC, S-Corp, partnership, etc.).
- File correctly with the IRS and your state.
- Avoid costly legal and tax mistakes tied to naming.
- Build a foundation for long-term tax savings.
Final Thoughts
Your business name is more than a label — it’s a legal and tax identity. Choosing wisely now can save you from compliance headaches, protect your brand, and maximize your deductions.
If you’re in the process of starting a business or considering a rebrand, it’s the perfect time to consult with an experienced CPA who understands the legal and tax implications of naming your company.
For more information about our tax planning services, contact us today: visit our website.
Velin & Associates, Inc
8159 Santa Monica Blvd STE 198/200 West Hollywood, CA 90046
323-902-1000
dmitriy@losangelescpa.org
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.