Is it a bad thing to come up with a name that is similar to your town or a item near you. Would this cause a big problem in the future for a company? Would this make people believe that you are always located in that area? Please let me know what you all think.

I don't think there is anythign wrong with that, our local ISP is accesstoledo and we live in toledo

I wouldn't look at it as a problem, if you do change locations the name can be changed, such as Ameritech SBC changed to just SBC.