I got a response from the state on Saturday regarding the application to register my business name as "Sweet Nothings by Meg". It seems there is a "Sweet Nothings Bakery" located in a major city (about an hour from me). The state denied my business name unless I get written permission from the owner of the other business to let me use a similar name.
I found the phone number and called this woman; I'm going to assume that her business is also an in-home venture with limited exposure, as 411 Information did not have a listing of the business name, but did have the owner, located at the address given by the state as the place of business.
I left a short message with the owner, explaining the situation. I do intend on writing a letter as well, but wanted to chat with her personally. In my neck of the woods, an hour away puts us in completely different markets, way far out of direct competition with each other.
If you were this person, and I called requesting to use a similar name, would you? I'd like to know what my chances are. I really don't want to use a different name 
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I don't want to sound mean, but to be very honest, I would have a hard time saying yes. If you think about it, you usually want to have a name that is as original and distinct as possible and you really don't want it confused with someone else's.
Would you do it in her place? What if people get confused when searching and she gets business that might have been meant for you?
I would say don't use it... Plus... sweet nothings sounds negative, to be honest... I like the Sweet Notions or better Sweet somethings...
Or to be a little silly Sweet Little somethin' somethin'" (what is that from???? )
Melissa
How about Something Sweet from Meg or Something Sweet by Meg.... Cause I have to be honest if it were me I'd have to say No... mainly need to think about what happens if she gets a call for someone looking for you... and you get a call from someone looking for her.... you've both lost business and if you did gain that customer that contacted you by mistake it may not be as big a pay off as the customer she may have gained....
I agree with all the previous posters on this one. An hour away is just too close. Different states, then I'd say okay (about three hours away), but only an hour in the same general vicinity, no, not a good idea, even if it's just mixed up phone calls it could be taking business away.
Here's the thing - in New Hampshire, 1 hour might as well be 5 hours. She is in the state's capital (central state) while I am on the Seacoast. Two completely different markets. In the 5 years I've lived here, I've been to the capital exactly twice. I have no intention of doing any advertising other than extremely locally, and I'm really not interested in delivering cakes outside of a 30 minute area.
I've attempted to look her up - she has no apparent presence on the internet for her business, and a call to Information (411) could not find a phone number for the business - only her personal name and address (which btw, is the same as the "business" address provided by the state).
If the situation was reversed, I would have no problems letting someone else use a similar name. I just hope she feels the same way.
It never hurts to ask, I suppose. But if I held the name, no way I'd let anyone dilute the trademark. There would be substantial confusion with those two names. Even if she agreed, how does she know you're a good baker and your work won't harm her reputation? For that matter, how do you know she's a good baker? Even if she agrees, do you really want to risk other people confusing her work for yours? Speaking as an attorney with a focus on IP issues, it's a bad idea for both of you.
I like some of the suggestions you've been given for a new name. Pick something, search to make sure the name is clear, and go for it.
If someone wanted to use my business name, I'd stab them in the eye with a rose nail.
NO WAY!! 
Even if you start small, what if your business booms and you want to grow - THEN the name might be a problem. I'd recommend going with something different.
i vote "sweet somethings". its really cute, and different. i know you are attached to your biz name, but really its in your best interest too to have a name not similar to anyone else. its not just for the current biz's protection. you want a name that is uniquely yours, and no one can get it confused. in the long run, itll be better for your business.
I would have to agree with the other responses....an hour is just too close for comfort for me. I wouldn't agree if I were in here spot. I love the other name suggestions, so I say choose something different and unique! I wouldn't want the same name as someone else!
I think my primary concern would be confusion among potential customers. Even at the distance you describe, if a customer had a negative experience with her they will tell everybody they know (you know how that goes!). Someone may associate that with you.
I'd change. There are so many great business names and I agree with above poster that "Sweeth NOTHINGS" sounds just a bit on the negative side.
Whatever you decide...good luck to you!
Think about it this way.........What if she bakes a wedding cake...and everyone there gets sick...or the cake is disgusting...and they say who made the cake?? "Oh I dunno, Sweet Nothings or something like that...." Well, people travel all over the place to go to family and friends gathering, maybe even your neighbor's friend of a friend. You wouldn't want to get her negative feedback or backlash either. Just a thought.
So, for sanity's sake yours and hers....I'd pick something else. JMHO!!
Meg's Sweet Somethings
I agree with the others - I would not risk confusion by sharing a business name with someone. And I absolutely ADORE "Meg's Sweet Somethings". It's cute, memorable, and a nice twist on the expression.
I'm sure you are sick to death of other suggestions....but
I LOVE Meg's Sweet Somethings!!!
I agree with the above poster that it might not matter unless the woman's cakes are terrible or something. Then you don't want to be mistaken for her.
For the record, I live on the boarder of MA and NH and I know what you mean about being close, but not in the same proximity, BUT if I'm, say here in MA and I'm searching for someone who makes cakes in NH, it's not going to matter if you guys are an hour apart from each other. Does that make sense? You are both an hour or so from me.
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