I have a small business that I do part time providing a home improvement service and have just spent a small fortune buying the domain name and would like to use it as my business name.
Legally it's likely ok, but just because something is legal doesn't mean it's a good idea.
Some concerns...
* some people who hear about your site will confuse it with the current business and hire them instead of you.
* some people who see the name may get the impression your business is fly-by-night; just a website someone put up.
* confusion with the current business, especially if it's well established, will get you on the crap list fast - that may hurt you in getting work, especially if you live in a relative small city.
Here's what I suggest:
1. Come up with a unique name for your business ... ie. John Smith Home Repair or whatever.
2. Get the business license / dba using that unique name.
3. Keep the domain and put that under your business name on signs, advertising, etc much like one would do with a phone number.
Assuming the domain name is as generic as you say, the above, in my view, is a viable solution.
Ron
Honestly, I would be extremely shocked and awed at the local authorities' idiocy if they even let you set up you business name as such since there is already a business of the same name (the .com doesn't matter to them... the 'meat' of the name is the name without the .com).
Be shocked, because many licensing authorities will! They don't check / simply don't care.
I am sorry you spent a lot of money to get the name when there is already a business local to you under the same name... I am afraid you will be SOL on the front of naming your business as the same as your domain.
The domain is highly generic referring to a geographical location where he physically is doing work and to a type of work he actually performs. It's not a clear-cut SOL situation ... far from it.
Word to the wise... if you want to buy a domain and use it for your local business... make sure there isn't an existing business by that name!
Overall a good suggestion. However, when it comes to a highly generic domain, especially one in which the registrant has legitimate rights, such as the OP appears to, it may be permissable for them to acquire the domain, at least for limited use, regardless of another business having a the same/similar name.
Ron