Tuesday, 9 January 2024

A Quick Start Guide to Naming Your LLC

WebProNews
A Quick Start Guide to Naming Your LLC

As the global economy slowly recovers from the COVID-19 pandemic, entrepreneurs are getting inspired to start their dream companies. In November 2023, the Census Bureau recorded roughly 464,838 business applications.

Entrepreneurs establishing their own startups are also seeing the crucial benefits of a limited liability company (LLC) business structure. However, before you can reap these benefits, you must first complete your registration. This process starts with thinking of a unique name for your new business.

What You Need To Know When Naming Your LLC

There are guidelines you must remember when naming your new LLC. Typically, the business name must end with the terms “limited liability company,” “company,” or “limited.” You can also use abbreviations like LLC, Co., or Ltd.

The terms above are necessary to clarify that the entity is an LLC and not a corporation or another business type. The following examples are some of the ways you could name your LLC:

  • AAA Limited Liability Company
  • AAA Limited
  • AAA Limited Liability Co.
  • AAA LLC
  • AAA Ltd.
  • AAA L.L.C.

Avoid terms that may mislead your clients or customers. You must not add anything that falsely implies that your business is a corporation, insurance firm, bank, or other type of enterprise that it is not. This means you cannot use words like “incorporated” or “corporation” as they can be misleading.

Moreover, you cannot use terms that imply your company is founded for any reason other than its permitted use. If you want to include words like “attorney” or ”medical,” you may have to file additional paperwork to prove a licensed professional operates under your business.

The state agency responsible for handling business applications in your location will have to approve the name you choose. In most states, the Office of the Secretary of State gives the approval. However, the approving authority varies in some areas in the US.

For example, in states like California and Texas, you must file your articles of organization to the Office of the Secretary of State. Meanwhile, a detailed guide for forming a New Jersey LLC will tell you that you must file a public records filing and Certificate of Formation to the Division of Revenue and Enterprise Services.

How To Know if Your Business Name Is Taken

You cannot choose a name for your LLC that is too similar or the same as the name of an existing company in your state. In some cases, you will not get approval if the business name you chose is already operating in other states or internationally.

To ensure approval, you must first confirm whether the name you want is available. There are two simple ways to check if an LLC name is already used in your state.

If you hire a lawyer to form the LLC, they can help you check the name’s availability before you file the articles of organization.

Another way is to look for the name in a business name database on the Secretary of State’s website. However, this method will only show you the businesses registered in your state, so it cannot guarantee that your LLC’s name is truly unique.

In certain states, the Office of the Secretary can perform the search for you for a fee before you can file the relevant documents. This way, you will know whether the name will be rejected before submitting your business application. This advantage helps entrepreneurs avoid rejection and restart the overall filing process.

To be safe, you should determine whether the name you want is not in use, even outside your state. Type the business name you want on Google and see whether anyone, anywhere, is using it or an iteration of it.

You can also use the Thomas Register of Products and Services or SuperPages to see trade and corporate names online. These pages allow you to look at active business names without paying any fees.

Tips To Remember When Naming Your Business 

Beyond meeting the basic legal requirements for LLC names, you must also consider other factors when choosing a name for your business.

For example, your domain name can be as crucial as your business name. When establishing your startup, you will likely need to set up a website with a domain name representing or matching your entity name. 

Before choosing a name, check that the domain you want is not in use and see how expensive it is to buy. There are different online resources with a directory of reliable registrars where you can find public domain names. 

Aside from that, you should also be forward-looking when coming up with a name for your business. Choose words that still stand out even as your company grows. 

For example, if you are operating the business independently, you may use your name for your LLC. However, once you decide to scale and hire new staff, a business name like “April Smith Coaching LLC” may confuse customers who expect to interact with you.

Similarly, if you are offering a product, avoid using that product name as your brand so that you do not have to worry once you expand your product lines.

These are some things to consider when choosing a name for your new LLC. By keeping these pointers in mind, you can establish a modern brand that can grow with your business.

Make Your Brand Memorable With a Unique Business Name

Picking a name for your new company is only one of several crucial business decisions you must make as you begin a new venture. Spending time to ensure your name suits your business and sets you apart from the competition will undoubtedly pay off in the future. If you are worried about the legal implications of choosing a name for your LLC, you can always seek professional advice from expert lawyers.

A Quick Start Guide to Naming Your LLC
Brian Wallace



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