Choosing an LLC name is one of the most important aspects of running your business. You want to choose a name that’s unique, brandable and easy to remember.
The first step is to come up with a list of potential names. You can then check them against the availability database on your state’s secretary of state website.
Legality
Choosing a name for your business is an important part of getting started. It’s important to choose a name that can be easily remembered and that reflects the products or services you offer.
Most states have straightforward requirements for business names. Your LLC’s name must include the words or abbreviations “limited liability company,” or an LLC designator, like “LLC.”
State laws also prohibit you from using any words that falsely suggest your business is a corporation, bank, insurance agency or other type of entity. These restrictions apply even if your company isn’t involved in these types of industries.
In addition, you should check that your preferred business name isn’t already trademarked by another company. If it is, you might get sued for trademark infringement when marketing your goods or services.
Characteristics
When choosing an LLC name, there are several factors to consider. You want to find a name that is easy to spell and sounds good when spoken aloud, but is not too similar to any other business in your area.
A good place to start is the state database of registered business entities in your jurisdiction. This will let you see if there is already an existing company with the same name as yours and ensure that you don’t infringe on their rights.
Choosing an appropriate corporate designator is also important, as this can help distinguish your brand from its competitors. The right sexy-looking company name will pay dividends in terms of brand recognition and attracting clients. It’s also a good idea to choose a name that is forward-looking and won’t get you in trouble when it comes time to expand. This will make it easier to get your new LLC up and running. The best way to do this is by brainstorming a list of words that evoke the services you will offer and aren’t too specific that they pigeonhole your company down the road.
Taxes
When you’re starting a new business, choosing the right name can make a big difference. It should support your business mission, grab attention and tell people what you do.
The right name can also help build trust and demonstrate your company’s seriousness about its work. However, it’s important to choose a name that is distinctive and easy to remember.
Limited liability companies (LLCs) provide greater flexibility than other business types when it comes to taxation. They can be either disregarded entities or elect to be taxed under another status, such as a C corporation.
Regardless of the LLC structure you choose, you’ll have to file income taxes for your business. These can be complicated and can involve state-specific requirements. It’s a good idea to consult with a certified public accountant and/or attorney who understands your industry and local tax laws before making any decisions about filing.
Management
Choosing the right management structure for your LLC is a big decision. In some states, it’s required in your articles of organization and operating agreement; others allow you to choose member-management or manager-management based on how you want to run your business.
With a member-managed LLC, the members own and control the company and have full authority over day-to-day decisions. This structure can be beneficial if you’re the sole owner or want to keep your personal liability low.
In a manager-managed LLC, the owners elect a single or multiple managers to handle day-to-day business. The members are still in charge of some important things, like dissolving the company, but they can hand off responsibilities to the managers.
The naming of your LLC can be a tricky process. It’s important to choose a name that isn’t confusing and doesn’t suggest you’re a corporation, bank, insurance company or other entity. Also, some words, such as “bank” and “insurance,” are restricted in many states.
