Can I Use Enterprise in My Business Name?
The word “enterprise” is frequently associated with entrepreneurial ventures, but it's generally used as a way to describe a for-profit business.4 min read
2. Difference Between Enterprise and Company
3. Choosing a Name For Your Business
4. How to Name Your Business: Utilizing Linguistic Tricks
Can I use enterprise in my business name? The word “enterprise” is frequently associated with entrepreneurial ventures, but it's generally used as a way to describe a for-profit business. Entrepreneurs who find success because they're willing to take risks may be described as “enterprising.” The word “enterprise“ is another word for a business.
What Are the Meanings of Enterprise, Company, Corporation & Incorporated
An enterprise is also known as a company. Legal enterprises come in many different forms. The various enterprises may be described as one of the following:
- Sole proprietorship: A business that is run by one individual, normally for their own financial gain, with unlimited liability for any damages that may occur due to the company's operations.
- Partnership: A company ran by two or more entities or partners who share ownership, although ownership does not need to be equal
- Corporation: An entity created to protect the owner(s) from any liability should the corporation face a lawsuit.
- Limited Liability Company (LLC): An LLC offers the tax treatment of a partnership and the legal protection of a corporation.
- Professional Company/Professional Limited Liability Company (PC/PLLC): A PC and PLLC refer to licensed professional firms for architects, lawyers, doctors, engineers, accountants, and lawyers, providing liability protection similar to a corporation.
In the United States, the most common enterprise is a sole proprietorship. An enterprise is understood to be a business organization. Essentially, the word "enterprise" can be used to describe any company that has multiple locations, levels, departments or divisions that collaborate together to achieve company goals and objectives. When employees from all company departments work together, it is described as an enterprise business process.
“Private enterprise” can be referred to as a strong intent directed towards generating and earning profits. The phrase “enterprise class” is also related terminology, referring to a device or a solution meant to be used in a large organization.
These days, enterprise seems to be frequently used when discussing IT companies. Another common phrase used to describe smaller ventures and companies within an economy is “Small and Medium Enterprises (SME).” Generally, the term enterprise has an informal meaning.
Characterizing your company as an enterprise doesn't hold much value. Rather, the importance is in understanding the necessity for company-wide collaboration within your business. Additionally, you should recognize that company culture plays a significant role in enterprise-related activities.
Difference Between Enterprise and Company
There are a few points to address when pointing out the differences between an enterprise and a company, including:
- A company‘s main priority is to engage in economic activity to earn profits for the shareholders. In many instances, an enterprise may not be as formal.
- There are community and educational enterprises that do not fall into the category as a company because their primary goal does not relate to generating profits.
- The term enterprise can technically be used to label a company. However, it is more commonly used to describe the sense of growth and action, as in the case of a private enterprise.
- Enterprise has become greatly associated with the IT industry, with terminology like “enterprise solutions” and “enterprise class” often being used.
- The acronym SME is a clear indication that the enterprise is associated with ventures.
Choosing a Name For Your Business
Deciding on a name for a business is not an easy task. The name of a company tells consumers a lot about your business. It is important to choose a name that is memorable and unique. Prior to selecting a name, be sure to check availability. Using a name that has already been claimed by another business is not permitted.
It's advised that you complete database research at both the state and federal level. If your desired name is available, it's important to register it quickly with your state.
How to Name Your Business: Utilizing Linguistic Tricks
Generally, larger companies tend to have flatter and more generic names. Owners spend a lot of time and money testing potential business names. Big companies want to be sure that their business name is clear, relatable, and non-offensive. A small business owner has the opportunity to be a little bolder in their choice of a business name.
There are few guidelines to consider when choosing a name for your small business, including:
- Choose a name that lends itself to wordplay.
- Choose a name that's strong and simple.
- Use a name that's easy to spell and pronounce.
- Avoid using puns.
- Don't be a copycat.
- Don't use a business name that's spelled differently than it sounds.
If you need help with determining if you can use enterprise in your business name, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.