Law Firm Trade Names in NC
In April 2021, the NC State Bar removed the requirement to register a law firm trade name for approval from the Rules of Professional Conduct. There are still some stipulations about choosing a trade name, mainly that it not be misleading. While registering a trade name was never onerous, this change may prompt you to reflect on your firm’s name, website address, or social media profile name to make it more descriptive and memorable.
What Has Changed?
Last Spring the NC State Bar adopted a complete overhaul of the RPC 7.1- 7.5. This covered assumed names/trade names and the required registration. The good news is that you no longer need to register with the state bar to use a trade name.
Here is the relevant portion of former Rule 7.5 prior to the April 2021 updates:
7 NCAC 02 RULE 7.5 FIRM NAMES AND LETTERHEADS
(a) A lawyer shall not use a firm name, letterhead, or other professional designation that violates Rule 7.1. A trade name may be used by a lawyer in private practice if it does not imply a connection with a government agency or with a public or charitable legal services organization and is not false or misleading in violation of Rule 7.1. Every trade name used by a law firm shall be registered with the North Carolina State Bar for a determination of whether the name is misleading.
Comment [1] A firm may be designated by the names of all or some of its members, by the names of deceased or retired members where there has been a continuing succession in the firm’s identity, or by a trade name such as the “ABC Legal Clinic.” A lawyer or law firm may also be designated by a distinctive website address or comparable professional designation. Use of trade names in law practice is acceptable so long as they are not misleading and are otherwise in conformance with the rules and regulations of the State Bar. If a private firm uses a trade name that includes a geographical name such as “Springfield Legal Clinic,” an express disclaimer that it is not a public legal aid agency may be required to avoid a misleading implication. A firm name that includes the surname of a deceased or retired principal is, strictly speaking, a trade name. However, the use of such names, as well as designations such as “Law Offices of John Doe,” “Smith and Associates,” and “Jones Law Firm” are useful means of identification and are permissible without registration with the State Bar.
The new language in NC RPC 7.1 Comment [5] is:
Firm Names, Letterheads, and Professional Designations
[5] Firm names, letterhead and professional designations are communications concerning a lawyer’s services. A firm may be designated by the names of all or some of its current principals or by the names of deceased or retired principals where there has been a succession in the firm’s identity. The name of a retired principal may be used in the name of a law firm only if the principal has ceased the practice of law. A lawyer or law firm also may be designated by a trade name, a distinctive website address, social media username or comparable professional designation that is not misleading. A law firm name or designation is misleading if it implies a connection with a government agency, with a deceased or retired lawyer who was not a former principal of the firm, with a lawyer not associated with the firm or a predecessor firm, with a nonlawyer or with a public or charitable legal services organization. If a firm uses a trade name that includes a geographical name such as “Springfield Legal Clinic,” an express statement explaining that it is not a public or charitable legal services organization may be required to avoid a misleading implication.
What remains the same? You still need to make sure that the name is not misleading, including but not limited to implying a connection with a government agency, a deceased or retired lawyer not associated with the firm or predecessor firm, a non-lawyer or a public/charitable legal services organization. Be careful and consider a disclaimer if you choose to incorporate a geographical name.
As always, if you have questions contact the NC State Bar Ethics Hotline.
Changing Your Firm Name
If you decide to get a trade name – something that is descriptive of the work you do, the market you serve or a geographic area – while you may not need to register it with the NC State Bar, you do need to double check with the NC Secretary of State’s website for duplicative assumed business names and with your local register of deeds to reduce any duplication with the same or similar names. See Deanna Broker’s excellent advice on this and other considerations for trade names based on the new Rules. For website domains you can go to Google Domains and search for a domain to see if your idea has been taken.
Why Would We Get a Trade Name?
If you are opening a new practice a descriptive name, rather than a name based on the owners/partners of the firm, might be extremely helpful in developing brand recognition. A name that describes who you help or what you can do is a terrific way to quickly market your services without hoping a potential client visits your website to learn more. You can be creative and memorable. It may also be useful down the road if you consider selling the firm, as it may be more attractive to a buyer if the firm’s name is not based on the last names of the owners.
Conclusion
Lucian Pera in his “What’s in a Name” article for ABA Law Practice Magazine points out that the rules regarding use of trade names in law firms is changing across the country. If you are considering using a trade name move quickly so you have as many options as you can dream up.