Legal Question in Business Law in California
I have a business name I want to incorporate under in california but the name appears to be incorporated in Massachusetts. The other business is doing the exact same line of work. Can one name be incorporated in two states?
2 Answers from Attorneys
Yes, unless the MA company has trademarked the name nationally. Of course if you are both successful enough, eventually your names will come into conflict in one state or the other, or a third state where you both expand. So it really is best to come up with another name.
The other attorney is right on point here. The California Secretary of State does not check incorporated entities in other states, so you would probably be able to incorporate under the name. The bigger issue is trademark (or service mark) infringement. If the entity in MA filed a federal registration, it would have presumptive rights throughout the U.S. Or, if it didn't, it will have common law trademark rights, but usually just within their immediate trading area. In theory, you could acquire a superior position by some strategic planning now, but more research and consideration of various alternatives is needed. Consult with a good business attorney for specific advice.
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
Franchise Attorney
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