Is it possible to change a business name after incorporating the business? The short answer, for registered corporation or LLC, is yes.
Is it difficult to change a business name? Changing a business name may sound intimidating. However, the process shares more similarities with naming a small business than one might think.
Are you are ready to change a business name? Complete these steps to make the name change.
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.
If you are changing the name of your business, you need to be certain this change benefits the business and its customer base. 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.
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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