LLC Naming Guidelines – How to Name your LLC? (original) (raw)

With the increasing demand for new business, many people are now planning to open a Limited Liability Company in any of the states in the US. However, establishing such a business entity is not everyone’s cup of tea. There are several facts that people need to comply with and consider at the time of establishing the Limited Liability Company idea. One of these factors involves how to name your LLC.

Naming the Limited Liability Company should be done with proper guidance as there are many rules regarding the naming process. Should you not fulfill some of the requirements and rules, you will face difficulties in the business name registrations, filing for various other documents, opening the bank account, and so on. The same goes if you are going to use a trading name or DBA (Doing Business As).

Why a Proper LLC Business Name is Vital

Company names are essential in creating a special identification of the LLC in the market. However, many people are there who avoid paying more focus on choosing the business domain name for their planned LLC business formation filings, and hence, face lots of consequences later on. Owing to this, we have discussed here some of the major benefits of choosing the best LLC corporate names.

• A proper business entity type will help you establish the company’s presence in the market, thereby creating a new identity that will resemble your LLC only.
• With a properly chosen name for the Limited Liability Company, you will be able to perform the rest of the registration process swiftly.
• You will be able to get the EIN number against the business only when you will have the name registration certificate with you.

Steps to Use LLC Name Generator

When facing difficulties in choosing the perfect title for your Limited Liability Company, you can easily use the business name database provided by several LLC consultants like Rocket Lawyer. Using the name generator is very easy, and with proper knowledge, you wouldn’t have any problem.

• First, you need to brainstorm both the business and brand names, which are suitable for your LLC business plan.
• Once done, enter the chosen names or keywords into the generator tool.
• A list of names will appear from where you can choose the perfect one appropriate for your business.

LLC Naming Guidelines

Whenever one has to choose a name for the Limited Liability Company, several guidelines are there which you need to follow properly, regardless of the type of business your LLC will be involved in.

Here, we have explained the detailed rules for choosing the LLC name that will be accepted by the concerned Secretary of State.

Should have the world ‘LLC.’

The first rule you need to comply with is the inclusion of the LLC abbreviations or the use of the full form: limited liability company. No matter what name you have chosen, this particular inclusion should be done as it sets your business apart from other companies like corporations, sole proprietorship business, and so on.

No confusion with a government entity name

There are several government entities with peculiar and common words in their names. When you decide on the potential names for the LLC, you need to make sure that your chosen title does not coincide with any existing and functional government entity. If you ignore this step, you will have to face legal lawsuits at the time of filing your LLC business name.

Unique name needed with no match

You also need to ensure that the name you have chosen for your business doesn’t match with other companies or LLCs established in your state. For this, you can use the LLC name generator like Rocket Lawyer to know what kind of unique names are available within the state’s directory records that you can use.

Usage of restricted words needs a license.

If you are planning to use some restricted words within your business name, you need to get the appropriate license for the same so that you can avoid any form of legal complications.

Legal Business Names VS Brand Names

When you search for a legal name, you must remember the differences between the legal and the brand names.

Legal name
This name represents your company on legal documents, and hence, the above-mentioned guidelines will be applicable for the legal name only.

Brand name
From the word itself, you can understand that a brand name is a title representing the product you sell or service you offer.

Both the legal name and the brand name might be different from each other. But, it is the former who needs more attention than the other one.

Mistakes to Avoid When Naming a Business

While choosing a name for the businesses, one needs to be very careful not to make silly mistakes that might cost them a legal lawsuit, or worse, rejection of the name registration filing. Be it a company title, a brand name, or the trademark titles, one needs to avoid naming mistakes at any cost. So, to make you more aware, here we have explained some major errors you should look for while choosing the title.

Choosing a general name

If your chosen name is too blunt and generalized, you will not be able to set the perfect impression on the customers, and hence, your business plan might not work out in an expected manner. This is why always choose a unique name and immediately get the name reservation request form to prevent others from using the words you have selected.

Selecting a name that limits the growth

When you are selecting an option from the list of domain names, many people make mistakes by choosing a word that limits the growth of their business. This will bring you more harm than good, and so, always keep an eye on your choice.

Using restricted words without any license

If you are using any form of restricted words for the ABC Limited Liability Company and not having the license for the same, you will face problems in the legal and domain name registration process.

Not including the ‘LLC’ acronym

It is the LLC abbreviation that sets this company apart from other types of corporations and businesses in the market. Without this particular part, you wouldn’t be able to classify your business plan to be that of an LLC.

What to Do After Naming the LLC

Time needed: 10 minutes

Here are things you ought to do after you have named your LLC.

1. Purchase the domain name
   The domain name will signify your website title, and hence, it is imperative for everyone to register it as soon as choosing the LLC name is complete. Several different domain names are available, which will help you to choose the perfect one. With this, you will have a personalized email ID and also proceed further with the LLC formation process easily. Try visiting NameCheap and GoDaddy.
2. Form the LLC
   Once the company name is registered with the Secretary of State, you can start working on the LLC formation, which will consist of hiring the registered agent, filing the Articles of Organization, building the Operating Agreement, and so on.
3. Establish the brand for your business
   In the end, do not forget to build the brand for your business, which will signify the product or the services you are dealing with. For this, you need to follow the trademark database and other laws to create the best brand name phrases.

Should I Use My Name For Llc

You can use your name for your LLC if you are the sole proprietor. However, in future, it may hinder the company expansion, so it is advisable to not use it.

First and foremost, using your own name for your LLC can provide a sense of credibility and authenticity to your business. Customers may be more likely to trust and feel connected to a business that bears the name of its founder. Additionally, using your own name can also make it easier to establish your personal brand and reputation in your industry. By putting your name on the line, you are making a clear statement that you stand behind your business and its products or services.

However, there are also potential drawbacks to using your name for your LLC. For one, by using your name, you may be personally liable for any debts or legal issues that arise in the operation of your business. This means that your personal assets, such as your home or savings, could be at risk if your business faces financial trouble. This is a crucial consideration, especially for business owners in high-liability industries.

Another potential downside to using your name for your LLC is that it may limit your ability to expand or sell your business in the future. If your business is highly tied to your personal name, it may be challenging to separate yourself from the business if you decide to bring on partners, investors, or new owners. It may also be harder to sell the business if it is closely associated with your name, as potential buyers may not want to inherit that personal branding.

On the other hand, using a separate business name for your LLC can offer some distinct advantages. By choosing a unique and memorable name, you have the opportunity to create a brand identity that is separate from your personal identity. This can be particularly beneficial if you plan on expanding your business beyond your own personal efforts, as it allows for more flexibility and scalability in the long term.

Additionally, using a business name can provide a layer of privacy and protection for your personal identity. By keeping your personal name separate from your business name, you may be able to shield yourself from unwanted attention or legal issues that may arise in the course of running your business. This separation can provide a sense of security and peace of mind for business owners who wish to keep their personal and professional lives distinct.

Ultimately, the decision of whether to use your name for your LLC is a personal one that should be carefully considered in light of the unique circumstances and goals of your business. Whether you choose to use your name or opt for a separate business name, it is important to weigh the pros and cons of each choice and make an informed decision that aligns with your values and objectives as a business owner.

F.A.Qs

Do I need a name registration certificate for LLC?

No, the need for the name registration certificate varies from one state to the other. So, before you move onto the next steps of establishing the company, look further and check whether the registration certificate is required or not.

Can I change the business name of my LLC in the future?

Yes, changing the LLC business name is possible in the future. However, for that, you need to follow the rules that are levied on changing the LLC business name after the initial registration of the original names is complete.

What is the cost of a business name reservation?

If you are planning to reserve your business name phrases so that their availability is maintained only for your LLC, you need to pay a minimal amount of fee, which starts from 10andusuallygoesupto10 and usually goes up to 10andusuallygoesupto50.

In Conclusion

Naming an LLC is equally important for a business as it is the identification of the business. Hence, the name of your LLC should be unique and available for use. While choosing a name, be clear so that your potential clients can identify the nature of your business.