The initial expenses to open a business can easily make you feel overwhelmed. In this case, it's very normal for you to think about saving some money in supporting activities like registering the business name.
If you want to register a business for free, you should know some key facts because it’s not that simple. There are complications you can face. So, read the article before starting the registration process.
How To Register A Business Name For Free
Technically, there is no way to register a business name for free. You must pay a minimum fee to go through the registration process for any business. However, in some cases, you can avoid registering the business name altogether, which will prevent you from spending any money.
You can run a business under your legal name to avoid registration. For example, if your name is Joseph Goldberg, you can run your business named “Joseph Goldberg Flower Shop” without any registration.
Remember, it must be your full legal name. If you want to name your shop, Joseph Flower Shop or Goldberg Flower Shop, you need to register your business under DBA, or doing business as. And for that, you need to pay a fee. So, this option restricts you to giving your business a unique name.
Types Of Business With Registration Requirements
There are different types of businesses, but not all of them allow you to run without registering the business name. Here are all the types of businesses with registration requirements.
Sole Proprietorship
This is the only type of business that you can operate under your legal name without registration. But if you choose to take a portion of your name or run under a different name, you must register with fees.
Partnership
Partnership businesses need to be registered, and for the registration process, you have to submit a name.
Now, technically, if you use a legal name of one of your partners, you may not need to register the name. However, while registering the partnership business, if the name matches any existing business, you must change it.
And to change it, you have to register the name under a DBA. So, ultimately, you have to register the name of your business.
Limited Liability Company (LLC)
This business has a separate legal entity from its owners. So it must have a registered business name to operate. The registration process should be done while forming the business with state permission.
Corporation
This is also a business that has a separate legal entity. During the incorporation process of this business, it's mandatory to register a unique business name. Moreover, the name registration fees in this type of business are usually higher than those in other business types.
Nonprofit Organization
This type of business also needs to register its name. However, as an owner of a non-profit organization, you can enjoy tax exemptions and discounts.
During the name registration process, you can apply for a discount on the fees in your state. Depending on the state, you can get a discount on fees.
Is A Free Business Name Registration Feasible?
Now you already know that in a sole proprietorship, you can avoid registering the business name and save money. But that’s not always a feasible option. You have to go through some problems.
Brand Confusion
Without registering your business name, you do not have exclusive rights to it. This means that other businesses can use the same or a similar name without facing legal consequences. In this case, your customer will get confused, and it will compromise your brand credibility.
Expansion difficulty
As a business owner, you will want to expand your business sooner or later. If you don’t register your business name, difficulties will arise in the time to expansion.
If you wish to operate in multiple states or form a legal entity like an LLC or corporation, you may find that your preferred business name is already taken or registered by another entity.
As a result, you have to change your name to expand, which will be a costly task. At the same time, it will confuse your customer.
Restrictions in Banking
Many banks require proof of a registered business name to open a business bank account or secure financing. So, if you operate solely under your legal name, it will limit your access to essential banking services or complicate your financial management.
Inability to Trademark
If you do not register your business name, you cannot apply for trademark protection. Without trademark protection, anyone can legally use your business name, even to sell similar products or services. They could impersonate your brand and sell low-quality products or services.
It will damage your business image and you will lose the trust of your customers.
Risk of Trademark Infringement
If another business registers the name you’re using but hasn’t protected it, they gain the legal right to that name. This means they can force you to stop using it, even if you’ve been using it for a while.
Imagine you’ve been running your business under a specific name for years. Suddenly, another company registers that name as its trademark. They can demand that you stop using the name immediately.
If you don’t comply, they could take legal action, which could be costly and time-consuming. If you’re forced to change your business name, you may need to rebrand completely, which is another hassle.
How To Register Your Business Name at a Low Cost?
If you are a little proactive, you can save some money on business name registration. Here are some ways to do that.
1. Go For Online Registration
You can register your business name through your state’s official website because it's usually cheaper than offline. It will cost you more to file the paperwork in person or by mail. Some states even offer discounts for online filing, which will decrease your registration fees.
2. Go For An Easier Business Structure
Some proprietorships and partnerships are easier to form than other business types. The name registration fees in these two structures are also less costly than others. So if you are overall on a budget, start with a sole proprietorship or partnership business.
3. Do It Yourself
Instead of hiring a third person to register your business, you can do it by yourself and save on additional charges. Go through the process of name registration properly before filing for online registration.
You can also get help from a friend or family member if someone has a registered business. That way, you can avoid hiring a professional for advice and save some money.
4. Opt For Bundle Service
Some companies offer package deals that include name registration, EIN acquisition, registering a domain name, and other startup services. Compare prices of different companies to ensure the bundle is cost-effective.
5. Keep All The Papers Sorted
You should organize your documents before starting the registration process. If you provide Missing or incorrect information, you may have to resubmit the application, which will incur resubmission fees.
6. Look For Incentives
Some states or local business development centers offer fee waivers, grants, or discounts for new businesses, veterans, or minority-owned businesses. You can check out those options before registering the name and see if you get any incentive.
7. Renew Timely
If you miss renewal deadlines, you have to pay a penalty and spend more money. So, you should practice renewing your registration in a timely manner to avoid any penalties.
How To Register A Domain Name For Free?
An online presence for your business is very crucial for your business in today's world. So, along with registering your business name, you have to register your domain name as well to create a business website.
You can also save some money while registering a domain name by following the suggestions mentioned below.
1. Search For Hosts That Offer A Free Domain
Many web hosting companies provide a free domain name when you sign up for their hosting plans. For example, providers like Bluehost, Hostinger, and Wix often include a free domain for the first year.
This is a great option if you’re planning to launch a website and need both hosting and a domain. However, keep in mind that the domain is usually only free for the first year. After that, you will need to pay the renewal fee.
2. Look For Offers And Discounts
You need to keep an eye out for promotions, seasonal sales, or coupon codes from domain registrars. Companies like GoDaddy, Namecheap, and Google Domains occasionally offer free or heavily discounted domains as part of special promotions.
Additionally, some platforms may also provide a free domain when you purchase other services, such as website builders or email hosting. It will be a good idea for you to compare these deals and see which offer gives you the best value.
3. Use A Subdomain
If you’re not ready to pay for a domain, consider using a subdomain offered by platforms like Dorik AI. Dorik AI is the best AI website builder which will offer you up to five free subdomains.
In this case, your business website address will be a little different from usual. For example, instead of josephflowershop.com, you would get josephflowershop.wordpress.com or josephflowershop.wixsite.com.
Subdomains are entirely free, but they come with some downsides. They don’t look as professional as a custom domain, and you don’t fully own the URL. Still, if you are on a budget and want a free domain registration temporarily, it can be a good option.
FAQs
Do I need to trademark my business name?
No, it is not mandatory to trademark your business name. However, it provides exclusive rights to use the name nationwide. It prevents others from using a similar name and protects your brand identity from infringement.
Is a DBA enough to start a business?
No, a DBA is not enough to start a business. It is only a process of registering your business name. You still have to register your business with the local or national government to run the business and comply with taxes and other legal obligations.
What is the cheapest way to register a business?
The most affordable way to register a business is to choose a sole proprietorship or general partnership. You just have to file a DBA and complete the registration process yourself through your state’s official website.
Conclusion
You must have already understood that there is no such thing as registering a business name for free. If you don’t want to spend money, you just have to avoid registering the name altogether. However, it also brings many complications.
Be proactive and register your business name with the minimum amount possible. It is the best course for your business in the long run.
All the best with your business. Goodbye!
