Brand Central - what's in a name?

Nike, Apple, Xerox – iconic brand names. Branding hasn’t typically been the purview of law firms but that is changing. A respected brand creates value. Like any other business owner one of my goals is to build the value of my firm so that I can reap the rewards now and on some future exit.

One way to increase law firm value may be to employ a brand name.  In New York, law firms can now use trade names for their firms, rather than individual lawyers’ names.  As long as the chosen firm trade name is not false, deceptive, or misleading, it is permissible.

In 2020, the New York Rules of Professional Conduct (RPC) 7.5(b) was amended to permit the use of trade names.  Before the 2020 amendment, New York was one of only nine states that prohibited law firm trade names.

The term “trade name” is not defined by the RPC but is generally understood to mean “a name that does not include the name of any lawyer currently or formerly practicing in the firm.” For example, a firm that focuses on family or matrimonial law could adopt a trade name such as “The Family Attorneys” and market around that.

The use of a trade name may also be subject to the requirements of Section 130 of the General Business Law. Under GBL §130, transacting business under a name other than the “real name” of the applicable business, i.e., the name at formation, generally requires the filing of an assumed name certificate.  The assumed name certificates should be filed in each County where the firm does business.

As heterodox as the idea of using a brand name for your firm might be, it could add value to your practice.  A trade name immediately communicates to potential clients what your firm does and helps with SEO and focused marketing. For firms in consumer facing fields like personal injury, branding and the use of trade names is a way to stand out in a crowded market.  

Branding your firm is just one of several tools to build value in your firm.  In coming articles, we will discuss other strategies to help bolster your firm’s value and, in turn, plan for an eventual successful firm exit.