When purchasing a business, can you purchase the name a business uses?

When purchasing a business, can you purchase the name a business uses?

• A. Yes
• B. No
• C. Only with approval from the state
• D. Only if the name is trademarked

Answer: (A)

When you buy a business, you can also buy the right to use its name as part of the asset transfer. The business name, along with goodwill and other intangible assets, can be included in the sale agreement so the buyer can continue operating under that name. You may achieve this by taking over the existing entity, acquiring a DBA or fictitious-name registration, or obtaining an assignment of the trademark if one exists. Even if the name is trademarked, you can still obtain the right to use it by securing the trademark assignment or a license, which protects your use beyond ordinary business-name registration. State approval is not generally required just to purchase the name; you’d handle transfers or registrations through proper filings associated with name changes or DBA/Trademark transfers.

When you buy a business, you can also buy the right to use its name as part of the asset transfer. The business name, along with goodwill and other intangible assets, can be included in the sale agreement so the buyer can continue operating under that name. You may achieve this by taking over the existing entity, acquiring a DBA or fictitious-name registration, or obtaining an assignment of the trademark if one exists. Even if the name is trademarked, you can still obtain the right to use it by securing the trademark assignment or a license, which protects your use beyond ordinary business-name registration. State approval is not generally required just to purchase the name; you’d handle transfers or registrations through proper filings associated with name changes or DBA/Trademark transfers.