When it comes to your business, a name is not just a name. It’s a long-term commitment and an expression of who you are and the brand you want to create. Because this matter is so important, it benefits you to do all you can upfront to protect the name and make sure—before you start using it—that’s it’s available for use. And that means going through the trademark process.

“Most people—even some attorneys—don’t realize that if you don’t deal with trademark law, you could run into trouble—with a company name, tag line, even a logo,” says Corey Kupfer, chief strategist at MarketCounsel, an Englewood, N.J., regulatory and compliance consulting firm.

Here are the top trademark-related mistakes that advisors make when choosing a name.

Mistake No.1: Doing only a cursory search for the name
It makes sense to eliminate potential conflicts before you actually form your business, Kupfer says. “Often, advisors just form their entity and six months later they get a cease-and-desist letter,” he says. Meanwhile, they’ve already spent a considerable amount of money on branding, marketing materials, letterhead and building goodwill. Better to search first, make sure the name is clear, and then form your entity, he says.

The first search you should do is with the Secretary of State where you are registering your business to make sure no one else has that name. The next step is to do a trademark search on a national level—a step many advisors skip, Kupfer says. “The only way to protect yourself is to do a trademark search nationally when you form your entity to make sure no one has the same name within the same field,” he says.

Advisors can do a basic search on their own using Google. They also can search the database maintained by the U.S. Patent and Trademark Office, the Federal agency that registers trademarks. In addition, advisors should consider hiring an attorney or consultant who specializes in trademarks to conduct more extensive searches. The price will vary according to how deep an advisor wants to dig.

Mistake No. 2: Failing to understand the ins and outs of trademarks
Names fall into different categories and there are many nuances, which is why it’s so important to work with an attorney who is well-versed in trademarks. Some names are easier to trademark than others. Take, for example, the name “401(k) Consultants.” That’s a name you might want to trademark, but couldn’t, says Scott Schwartz, a member of the intellectual property group in the Philadelphia office of the Cozen O’Connor law firm. Nonetheless, an advisor who uses it might find it frustrating if someone opens up a business with the same name.

Aside from the trademark issue, choosing such a limited name could restrict you from a growth standpoint as well. No one is going to expect “401(k) Consultants” to do high-end wealth advisory work, Schwartz says.

Another nuance: If you intend to use an English word and someone is using a foreign word with the same meaning, or vice versa, you won’t get the mark, says Mark Roth, managing partner at Orum & Roth LLC in Chicago, who focuses on intellectual property and corporate law.

Mistake No. 3: Failing to file an “intent-to-use” application
It behooves you to file an “intent-to-use” trademark application as soon as you know the mark is clear, says Roth of Orum & Roth. This allows you to reserve use of the name for up to three years and prevents someone else from taking it. If you don’t file this application and someone else does first, you could be in for a fight—one that could easily have been avoided.

Mistake No. 4: Prematurely using the ® symbol
Some people think that once they’ve applied for a trademark, it’s theirs; however, using the symbol prematurely is false advertising, says Roth, who has sued people over this issue. “Even though an application is pending, the registration symbol may not be used before the mark has actually become registered. The federal registration symbol should only be used on goods or services that are the subject of the federal trademark registration,” the U.S. Patent and Trademark Office says on its website.

Mistake No. 5: Not policing and/or renewing the mark
“There’s no reason to get a trademark if you’re just going to let everybody use it anyway,” says Kupfer of MarketCounsel. Indeed, trademark holders are obligated to police the mark. “When I find out about it, I need to tell them to stop. If I don’t, I lose my rights to stop them at some point,” Kupfer says.

There are trademark-monitoring services that, for a fee, will help you monitor your mark.

Also, remember that unlike a copyright, a trademark must be renewed. Trademark registrations issued on or after Nov. 16, 1989, have a 10-year term, renewable every 10 years. Trademark rights can last indefinitely, provided you file the necessary documentation and continue to use the mark. “With a trademark, you have to show you’re using it,” says Richard Roth, a civil litigation and enforcement-defense attorney with the Roth Law Firm in New York City.

Mistake No. 6: Choosing a name that’s misleading
Whether or not you trademark your name, at the end of the day you still need to make sure it’s not misleading in any way. If it is, you could run afoul of the Investment Advisers Act, says Les Abromovitz, a compliance and regulatory consultant at National Compliance Services Inc. in Delray Beach, Fla.

For example, it’s a bad idea to choose firm names that might appear to make a guarantee such as “Can’t Miss Investment Advisors” or “Sure Thing Investment Advisors,” he says.

Also, avoid using the acronym “RIA” in your business name or the initials “IAR” after your name to indicate that you are an Investment Adviser Representative. Securities regulators have expressed concern that those initials might look like a degree or designation earned by an investment adviser, says Abromovitz. Choosing a name such as “ABC Registered Investment Advisor” or “Joe Smith, Registered Investment Advisor” also is not advisable, he says.

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