When you start your business, you must name it. And while naming might not seem like a big deal, it plays a vital role in how your business performs. For example, if you name your business ABC Catering and there’s a business known as ABC Caterers, your clients can confuse you for a competitor. And you can lose out on business unless you change your LLC moniker.
This guide will cover if you can change your LLC name, what reasons are best for doing this, when to do it, and the alternatives available to you. Sometimes, you do not need to change your LLC moniker and can instead get a DBA.
Table of Content
Business name changes are more common than you may think. In essence, you adopt a new one under which you conduct your business. For example, if your previous name was ABC Catering, you can decide to go with XYZ catering. The change would also reflect in your legal documents, which you would need to update to notify the state of the change.
Why would anyone want to use another name to conduct business? The reasons vary greatly, and we will thus focus on the common reasons why people find themselves asking this question?
Sometimes, in the hurry of filing the paperwork needed to get your business up and running, you can make an error. For example, your idea may have been to name your business ABC Catering, yet the paperwork shows that the business is ABC Caterings, and you want to get rid of the s. That’s a common reason that you can address by refiling your paperwork.
Suppose you started working under ABC Catering, and ABC Caterers has sent you a letter of demand requesting that you change your name. Often, this happens when you have infringed on someone’s rights (patents, trademarks, etc.). And in such a situation, you have no choice but to go back to the drawing board or face the other company in court. The latter option can be pretty costly and can have you piercing the corporate veil provided under LLC laws.
Can I change my LLC name to avoid legal issues? Yes! As you find another name for your business, you should pay attention to:
Also, work with an attorney to ensure you do not miss out on crucial points that could have you in such a situation again.
In the past, it was quite easy to create a brand based on someone’s name. Take Ralph Lauren as an example – it’s a brand that has held strong after all these years. Even so, naming a business after someone comes with a hoard of challenges:
Also, once the founder passes on, you can have difficulty changing the name to something else – people would associate it with a change in the value proposition. While you can still name a business after someone, you should consider how this affects your business a decade or two from now. So, updating the legacy name might be the right move.
In business, there comes a time when almost everyone jumps on a naming trend. When initials were common, many businesses wanted to do the same thing. And when these ran out of fashion, people leaned on lengthy names. But that’s the thing – trends come and go. And when you use their patterns to name a business, you end up on the losing end because many other businesses share your naming pattern.
Even when you market your business, the name is not memorable because many people use the same identifier. If you want to avoid getting caught up in the fads, you can choose something unique that will serve you for decades.
Many businesses reach a point where they realize that the moniker they initially chose no longer works with their audience. That’s because brands evolve, audiences change, core values become more complex, and the business gets to a point where change is inevitable.
For example, Sony was once known as Tokyo Tsushin Kogyo. Would that name have worked for the company to date? Not at all. Apple was one Apple Computers. But as the company evolved to produce more than computers, it became necessary to change its name to accommodate other software and devices. If your company has faced similar milestones, changing its moniker could be what takes it to the next level.
There are several ways in which a business name can trigger confusion. For example, ABC Catering is similar to ABC Caterings, and the latter business could benefit from this oversight. But that is not the only way confusion can arise. Say, for example, that your business name is long or hard to pronounce. You would spend a lot of time explaining what it meant to clients. And that would hurt your brand equity because people would associate the venture with difficulty.
Say that your business operates under ABC Catering California. Anyone who sees your name will assume that your focus lies in California and will likely feel that you will not be the right fit for them if they are outside this region. However, this only applies if your brand story is not tied to California. If it is, you can still expand and use the moniker to show your roots. Even so, such marketing can be a tad tricky, and you may want to try other options that are more inclusive.
We mentioned this point regarding naming trends. At some point, using initials seemed to be the in-thing, and many people followed suit with the pattern. You can probably think of some businesses that use such naming trends – UPS, DHL, and BP. And while these have excelled, they tend to be the exception. That’s because such monikers lack meaning and make it harder for people to foster brand loyalty.
This reason is quite common. Take the example of when Google started and was known as Backrub. Often, people ask each other to Google something. How awkward would it be to tell someone to go and Backrub something? That change was necessary; the same factors may apply to your case.
Can you change the name of an LLC? Yes! If any of these issues relate to what your company is facing, making that change could be the right move.
Many people who want to change LLC names often find themselves between a hard place and a rock. Why is that? When you think of how to change LLC names, you likely don’t think of how this will impact your business. But let’s look at the implications this change could have on an existing business:
So, can you change the name of your LLC without risk? The answer is yes and no. You can mitigate most of the risks associated with such changes by conducting a lot of research and laying the sound groundwork. But if you’ve been operating under the name for a while, be ready for a bit (or a lot) of backlash from critical stakeholders. You can reduce the confusion by communicating the change beforehand.For example, remember we said that Google was initially called ‘Backrub’? Yes, and that is a long-forgotten change because the company remained true to its mission and vision statements – which is what you need to do.
If you do not like your current business name and want to keep it, there is a way around this. The answer comes in the form of a DBA (doing business as) name, also referred to as a trade, assumed, or fictitious name.
So, how does this name work? Let’s use an example. Suppose your business operates as ABC Catering, but this no longer serves your audience or does not align with your values. You can decide to file a DBA for ABC Treats, which would serve as the moniker you would use in marketing. However, the parent company would still be ABC Catering. And that means that if you had legal issues with your primary name, a DBA would not solve the issue.
Below are some of the considerations you should keep in mind:
Please note that you cannot register a DBA that infringes on someone else’s rights. For example, you cannot start a fast-food chain and call it Mcdonald’s if you do not have an agreement with the franchise. If a DBA is not right for you, can you change the name of your LLC? Yes, find the steps below.
If you are wondering how to change your LLC name, you will be happy to know that the process is relatively straightforward. Here’s how you do it:
If you operate the business alone, the decision will fall on your shoulders because you are not answerable to anyone. However, if you have other people in the business who have decision-making rights, involving them in the process is integral to its success.
Start by assessing the current operating agreement – it should outline how you will go about the name change and what factors you must consider. If you do not have such an agreement, you will need to effect the change by relying on local or state laws. When you have all agreed on the best name for the business, you will need to document the change in the operating agreement. You will also need to update the agreement and create a written resolution.
The written resolution will be important when filing the change with the state as it will ascertain that you are all on board. Thus, get your stakeholders to agree with you on this move, and you will be on the right track.
The paperwork you filed with the state, alongside the annual reports, will all bear the original name your business had. Thus, you must contact the state and inform it that a change has occurred. But how do I change my LLC name?
Each state varies on how you should go about this. But generally, you will need to fill in and file an amendment to your articles of organization. However, you may also be subject to the following conditions:
You can speak to an attorney about what applies to your business based on the prevalent conditions.
Just like you paid to file the original paperwork, the state also requires you to pay a fee to change your moniker. The fees vary based on the state. Usually, you will pay anything from $20 to $150 to complete the name change.
Once you have filed the amendment (within 30 days of writing the resolution), you must wait until the state approves it. Approval is not guaranteed, and you should thus ensure that the chosen name aligns with the applicable state laws. Once you get approval, you will get a certificate of amendment, which you can use for official reasons.
The next stage is to inform the tax authorities that you have changed your name – you might need to get new tax details. Please note that the process will depend on your business structure and current tax obligations. Thus, you can ask your attorney to follow up on the changes, or you can visit the IRS website for more information. Ensure you get this done as soon as you get the certificate of amendment so you can avoid fiscal issues in the next financial year.
The last step in the ‘how to change the name of your LLC’ process is easy. Once you have met your legal and financial obligations, you can let all your stakeholders know about the change. Who should you inform?
You can ease them into the change as you update all your contracts with your new name. Some institutions will require you to provide the certificate of amendment before you make any changes to your current contracts. You also need to change your website, branding, and other details crucial to the efficient operation of your business. That’s all you need to know regarding how to change my LLC name in any state.