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Imagine a writer opens a LLC in the state of Wyoming for selling their books on Amazon.

Is he allowed to name the company "Horror and Fury Entertainment" (provided there are no other companies named like that)?

I'm asking because "entertainment" can mislead people to believe that the company makes movies or video games (as opposed to "Horror and Fury Publishing" or "Horror and Fury Press").

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Yes.

There is no requirement that a company name be accurately descriptive. One could call such a company "Horror and Fury Brewing" if one chose to, or "Joe's Eats". Such a name might well reduce book sales, but there is no law against poor business decisions. As long as the name does not violate any existing trademarks, it should be OK unless there is some specific law in the local jurisdiction that regulates company names, which seems unlikely.

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