Can't use the word BANQ in company name. SOS!

[jimmythegeek]

I have a great website domain (.com) that I want to use for a business but for legal reasons, we aren't allowed to file a company in Delaware under that exact name because it contains 'banq' within the word which isn't allowed. They consider it a derivative of 'bank'.

I'm looking for an attorney that can point me in the right direction. For example, can I file my company in a different state that complies, then have a different Delaware corporation own this company and its domain? What state could I use? That way my startup still gets Delaware law protections.

In a worst-case scenario, are we allowed to use a completely different website domain than what our company name is filed under? I can't file a DBA in Delaware under this name either. The reason I really want to have something incorporated under this name is that we will fundraise under this name and it will make compliance for our investors as easy as possible.

If you have any other viable options that satisfy this problem please let me know. Thanks.

 

[LdiJ]

I have a great website domain (.com) that I want to use for a business but for legal reasons, we aren't allowed to file a company in Delaware under that exact name because it contains 'banq' within the word which isn't allowed. They consider it a derivative of 'bank'.

I'm looking for an attorney that can point me in the right direction. For example, can I file my company in a different state that complies, then have a different Delaware corporation own this company and its domain? What state could I use? That way my startup still gets Delaware law protections.

In a worst-case scenario, are we allowed to use a completely different website domain than what our company name is filed under? I can't file a DBA in Delaware under this name either. The reason I really want to have something incorporated under this name is that we will fundraise under this name and it will make compliance for our investors as easy as possible.

If you have any other viable options that satisfy this problem please let me know. Thanks.

The word Banq is the French word for Bank. It is likely illegal in all 50 states to include the name "bank" or any derivative in a company name if you are not officially (licensed, regulated etc) a bank. Therefore I doubt that you will find any work around for that.

 

[jimmythegeek]

The word Banq is the French word for Bank. It is likely illegal in all 50 states to include the name "bank" or any derivative in a company name if you are not officially (licensed, regulated etc) a bank. Therefore I doubt that you will find any work around for that.

But can't I use the domain and call the business something else?

 

[jimmythegeek]

The word Banq is the French word for Bank. It is likely illegal in all 50 states to include the name "bank" or any derivative in a company name if you are not officially (licensed, regulated etc) a bank. Therefore I doubt that you will find any work around for that.

Can I file the company as something different than the domain?

 

[LdiJ]

But can't I use the domain and call the business something else?

I doubt it. It would still imply that you are a bank and that is very much a no no.

 

[zddoodah]

I doubt it. It would still imply that you are a bank and that is very much a no no.

I think a number of food banks and blood banks would disagree. There's no law that prohibits a business from using "bank" in its domain name. Whether that's misleading in some way depends on the relevant facts and circumstances.

Beyond that, I already responded to this OP on another forum.

 

[quincy]

I have a great website domain (.com) that I want to use for a business but for legal reasons, we aren't allowed to file a company in Delaware under that exact name because it contains 'banq' within the word which isn't allowed. They consider it a derivative of 'bank'.

I'm looking for an attorney that can point me in the right direction. For example, can I file my company in a different state that complies, then have a different Delaware corporation own this company and its domain? What state could I use? That way my startup still gets Delaware law protections.

In a worst-case scenario, are we allowed to use a completely different website domain than what our company name is filed under? I can't file a DBA in Delaware under this name either. The reason I really want to have something incorporated under this name is that we will fundraise under this name and it will make compliance for our investors as easy as possible.

If you have any other viable options that satisfy this problem please let me know. Thanks.

All states have restricted words lists which restrict or prohibit the use of certain words for names of businesses. You need to check the Secretary of State offices of each state to see which words are restricted or prohibited.

As a general rule, states prohibit the use of business names that reference or falsely suggest an association to any federal or state governmental body/entity, or imply the business is a government unit.

Here is an example from New York of their restricted/prohibited word list:

https://dos.ny.gov/system/files/documents/2018/10/restrictedwordsphrases.pdf

A business and its owner should never state or imply that they are something they are not. There are many different laws in all states that are designed to protect consumers from deceptive business practices.

 

[adjusterjack]

The word Banq is the French word for Bank. It is likely illegal in all 50 states to include the name "bank" or any derivative in a company name if you are not officially (licensed, regulated etc) a bank. Therefore I doubt that you will find any work around for that.

Agree with Zddoodah. I found a few registered trademarks with "bank" that aren't banks.

Bankassist - Downloadable computer software for automated customer assistance with financial management and banking tasks.
PTCE Practice Bank - Online subscription service providing online access to retired exam questions for training purposes to prepare for examinations in the field of pharmacy technicians
Ameriserv Presents Bank Chats - Educational services.
Tiger Attitude Chartered Pastry Bank - Restaurant services.
Bank of Hype - Athletic apparel.

It's possible that OP can use "bank" or "banq" in his business name depending on the exact name of the business and the purpose of the business, neither of which the OP has deigned to reveal.

However, I also found several trademarks using the word "banq" including banq.com, many of which provide financial services. OP may have an infringement issue even if the use of the word is allowed.

 

[quincy]

Businesses that want to use words that are on a state’s restricted list (rather than prohibited) can in some cases have their names approved by a state for their particular use.

It is important to note that state registration of a business name is different than trademark registration of a name. For example, Trump was able to get a “Trump University” trademark but the use of the word “university” is restricted in New York. Trump’s use of “university” violated New York law so he had to change the name to “Trump Entrepreneur Initiative.”

A check with the Secretary of State, and doing a thorough trademark search, is important before investing a lot of time and energy and money into marketing a business using a specific business name.

 

[Taxing Matters]

But can't I use the domain and call the business something else?

Doing that may be considered misleading if your business is not a bank. Why are you so determined to use that particular word? I suspect there are other terrific names you could use that would not present this problem.

Also, if you will not be operating the business in Delaware, why do you want to form your business in that state? Delaware offers great protection and service for large publicly traded businesses. Most of those benefits don't help a small privately held business. But it can subject you to additional burdens that you would not have if you simply organized the business in your state or a state in which you actually conduct business. Bear in mind you still have to register the business in any state where it will do business so you you'll be registering in those states anyway. So if you aren't doing business in Delaware then registering there is simply adding another layer of unnecessary administrative burden for you.

 

[quincy]

With so many words to choose from, picking a business name that is already subject to challenge seems a bit silly.

Any business name can effectively identify a business purpose with good marketing. Look at names like Google and Pepsi. Without good marketing, consumers would have a hard time identifying their service or product.

The best way to please investors, by the way, is to not start off the business with a legal issue that needs to be resolved.