LLC Naming Guidelines – How to Name your LLC?

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.

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

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.

When it comes to starting a business and choosing a name, entrepreneurs have an array of options to consider. One question that often arises is whether it is a wise decision to use one’s own name as the basis for a Limited Liability Company (LLC). While there are valid arguments both for and against this practice, the decision ultimately rests on individual circumstances as well as long-term goals.

Proponents of naming an LLC after oneself argue that doing so can be a powerful branding tool. By putting your own name out there, you showcase who you are as an individual and entrepreneur. Whether you are well-known within your industry or starting from scratch, associating your personal reputation with your business can create a sense of trust and authenticity.

Another advantage often touted is the flexibility that using your name brings to the table. Renowned for its simplicity, a personal name does not restrict the scope of your business. Whether your enterprise thrives as a consultancy, a tech start-up, or a boutique retailer, utilizing your own name leaves openings for future ventures without requiring a renaming or rebranding of your company.

Furthermore, naming an LLC after oneself can also create a deeper sense of commitment and responsibility. By attaching one’s name to their business, it signifies a personal investment in its success. This sense of connection may encourage more dedication and motivation, driving you to go above and beyond for your clients, customers, and employees.

On the other hand, there are those who caution against using one’s name for an LLC, claiming that it may hinder future business growth. While initially a personal name may present an advantage, it can potentially limit the business’s scalability beyond its founder. If plans are in motion to expand as a multi-person operation or sell the business in the future, relying solely on one’s name might make the transition difficult or even undesirable.

Moreover, using your own name could create a perception that the company revolves solely around you, resulting in clients or customers seeking alternatives with a more diversified foundation. While it is true that some businesses successfully break this mold, it often requires additional effort to portray the company as more than just the individual whose name is on the door.

Critics of self-named LLCs often argue that personal branding can carry its share of risks. A setback or scandal involving the individual’s personal life, even if unrelated to the business, may negatively impact the company’s image by association. Separating the personal name from the business name can avoid this potential predicament, shielding the company’s reputation in the face of life’s uncertainties.

In the end, the choice to utilize your name as the foundation for an LLC should be a well-considered decision, weighing personalized advantages and potential drawbacks. It hinges on an assessment of your vision for the business, growth ambitions, and intended market presence. Regardless of whether you opt for a self-named LLC or an alternate naming strategy, the essential components for a successful company – professionalism, passion, and dedication – will always reign supreme.

F.A.Qs

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.