You might be considering a new direction for your business and wondering if it’s possible to change your business name after incorporation. The good news is that for registered corporations or LLCs, the answer is a resounding yes.
While the idea of changing your business name might seem daunting, the process can be straightforward if you understand the necessary steps. This guide will walk you through everything you need to know to make the transition as smooth as possible.
Changing a business name can be a strategic move to better align with your evolving brand identity, target a new audience, or reflect significant changes in your business model. Other reasons include rebranding to shake off a negative image, legal reasons, merging with another company, or differentiating from competitors. A new name can rejuvenate your brand, improve market positioning, and attract new customers, making it a crucial consideration for businesses aiming to adapt and thrive in dynamic markets.
Changing your company name is a big decision that can reshape your brand identity. To ensure the transition is seamless and legally sound, it’s important to follow a structured process.
Below is our a simple seven step guide outlining the essential steps you need to take to successfully change your company name. Whether you’re responding to a shift in your business strategy or rebranding for market relevance, these steps will help you navigate the process efficiently and effectively.
A business name change is a serious undertaking for any business. Naming a small business is a thoughtful process. It takes time and research to complete. The name of your business is meant to be unique. It helps differentiate you from your competitors.
When you are changing a business name, you need to be certain the change benefits the either the business or its customers base in some way. Here are a few questions you may ask yourself before you start to change a business name. This ensures you, and the business, are ready for the change.
You have a pretty good idea of why you want to go through the process of a name change.
The next couple steps are similar to naming a small business. Brainstorm some business names. Jot down a few options. Then, conduct a name search for their availability.
You may look through a trademark database like USPTO’s Trademark Electronic Search System (TESS). Or, you may work alongside a third-party trademark filing services provider. This provider determines if this trademark has already been registered or if it is available for use.
Check in with the Secretary of State in which you do business. You’ll want to make sure this business name is available. Your business needs to follow the state’s rules for naming a small business. For example, an LLC may need to identify itself as “LLC” or “L.L.C.” in its business name.
It’s also a good idea to conduct a domain name search. Check to see if the domain name, and preferred social media handles, are available for your new business name.
In an LLC, the members (owners) must approve a name change. Corporations must also receive shareholder approval prior to a name change.
Approval may be obtained through a resolution for change of name of the company. Review corporate bylaws (corporation) or LLC operating agreement (LLC) for further details on name change approval.
Once the members and shareholders agree to the name change, it is time to notify the state and contact the IRS. Let’s break down what companies incorporated as corporations and LLCs should know about these notifications.
Incorporated businesses are assigned an employer identification number (EIN) by the IRS. This is a federal tax ID. It tracks the payroll activity of a small business.
Some name changes may require new EINs. Check in with the IRS to determine if your business needs to apply for a new EIN.
What happens to your existing business licenses and permits under a new business name? Reach out to your local city or county offices. They will determine if you need to apply for new licenses and permits or cancel existing ones.
It’s almost time to share your new business name with the world! Before you begin sharing the news with your customer base and updating business signage accordingly, it’s important to first meet with an attorney.
Inquire if there’s anything else left to do before announcing the name change. For example, you will need to amend your existing LLC operating agreement or corporate bylaws with the new business name. You may also need to get in touch with your bank and determine whether you’ll need to open a new business bank account.
Changing your business name can be a pivotal move with lasting impacts on your brand identity and market presence. Here, we explore both the advantages and challenges to help you make an informed decision on how to change a business name.
Let’s say you are content with your legal business name. However, you would like to operate under another business name. This name, you find, more accurately represents a subset of your business. You would not need to file for a formal name change in this situation. Instead, you would consider filing for a doing business as name (DBA).
A DBA is a name which identifies a business. Essentially, it allows business owners to operate and receive payments under a different name than that of their legal business. Obtaining a DBA makes it easy for business owners to add additional lines of business as the company grows and expands.
Depending on the needs of your business, you may find you may be a good fit for a name change. Or, you may find it’s more advantageous to file for and register a DBA.
Let’s help change your business name. Visit mycorporation.com and our team of professionals will assist you with your small business needs.
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