Prohibited Names for LLCs and Nonprofits in Alabama.

Have you decided on a name for your new Huntsville, Alabama business?

It is worth checking to make sure your planned limited liability company (LLC) or new business’s proposed branding, domain name, or trade name isn’t prohibited from use by applicable Alabama law from us.

Some names cannot be used because they are too similar to another trade name or other business. Other names may be protected by law or be too misleading for use by a new Alabama LLC.

There are restrictions on business names from the Alabama Code. Keep reading to learn more.

New LLCs can’t Share Names with Existing Alabama Businesses.

Individuals can’t use the name of an existing Alabama LLC or another business that has already registered its name with the Alabama Secretary of State Office. This prohibition includes existing name reservations that have not yet expired or are going through the Alabama probate process.

According to Alabama law and the Alabama Secretary of State, using the entity-type description at the end of the business name, such as “LLC,” “Corporation,” or “Inc.,” on the certification of formation does not distinguish a new business from an existing business. This means that you cannot simply change the type of entity or description to reserve a conflicting entity name.

Huntsville, AL nonprofits, however, are exempt from the requirement to include the corporate words in their legal names.

Accordingly, it is important to reserve names in Alabama early in the process of setting up a business so as not to either miss the chance to reserve a name or else have a competitor take your name.

New Huntsville, Alabama LLCs can’t Use Deceptive Business Names.

An Alabama business entity also can’t have a deceptive name that implies the company is engaged or operating in a business that the business is not authorized to pursue.

For instance, naming an Alabama LLC “North Alabama Hospital, LLC” when the business is not licensed to provide healthcare services would likely violate this law.

When choosing a Huntsville business name, it is best to make sure the name is connected to the non-profit’s or business’s purpose and does not confuse the public.

New Huntsville Nonprofits can’t Use Trademarked Business Names.

Similar to the ban on using the name of existing entities for an Alabama LLC, new nonprofits and businesses cannot register for a name that is protected by federal or Alabama trademark and copyright law.

This means that if someone else has taken the legal steps to register and protect a name - even if it is not a legal business entity - others cannot use that name for their own businesses in Huntsville.

When setting up a new Alabama small business or sole proprietorships, it is important to make sure that the name does not copy or otherwise infringe on an existing product or trade name owned by another business entity.

The United States Patent and Trademark Office maintains records on federally-registered trademarks. Click here to search the USPTO trademark database.

The Alabama Secretary of State’s Office maintains records on Alabama-registered trademarks. Click here to search the Alabama trademark database.