Can I Change The Name Of My Llc?

Irresolute the Name of Your LLC

At that place are a variety of reasons why a concern owner might want to modify the name of their limited liability visitor (LLC). Refer to this commodity for the Steps to change the name of your LLC and when it is the best time for a business name change.

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Final Updated: 2021-08-27

Reasons to Catechumen From an LLC to a Corporation

Business organization owners might consider converting from an LLC to a corporation for a diverseness of reasons. Hither are some of the nigh common:

Yous want to raise money from investors. Investors typically prefer to invest in corporations. Why? Considering it'southward easier to buy and sell stakes in corporations given their defined and transferable buying shares. Corporations also have the ability to issue a dissever form of shares called "preferred stock," which investors frequently discover attractive.
You want to undertake a public offering. If y'all program to anytime conduct a public offering of common stock, you must first grade a corporation.
Y'all want to issue stock as compensation. Whether y'all want to result stock as bounty to initial investors or organizers, or you desire to regularly upshot it to employees as function of their regular bounty, it's much easier to do and so equally a corporation than an LLC.
You want to join a startup accelerator. Startup accelerators or incubators often take equity and therefore require companies to exist incorporated.
You want to lower your self-employment taxes. As an LLC, members must pay Social Security and Medicare taxes on their share of the entire company's profits. In a corporation, owners receive payment similar other employees and only have to pay these taxes on the corporeality of their bounty. Importantly, an LLC can choose to be taxed as a corporation without actually converting into ane.

Reasons For a Name Change

You may decide to alter the proper name of your express liability company (LLC) for a variety of reasons. The most common reasons involve:

Making a Correction: In some cases, you lot may simply need to correct the proper name of your LLC if a typographical error appears on your business registration forms.
Avoiding Make Confusion: If people ofttimes misfile your company with another business organisation, your current business name could hinder your growth and sales. Every bit such, information technology's likely fourth dimension to consider a new option.
Supporting Growth or Changing Your Industry, Products, or Strategy: If your initial business name seems a flake limiting equally your company grows, a broader name may now experience more than appropriate. For example, consider a business organisation that sells books and includes the word "books" in its business proper name. If that business starts to sell movies or provide other services beyond books, the owner may want to omit "books" from the company name. You also might consider a name change if you motility into a completely new industry or if your business name references your local area and you expand beyond that city, state, or region.
Updating a Legacy Name: If your company proper name references a person who left the company or passed away, the current name may no longer properly reflect the concern. Some business organisation names tin can, of class, far outlast their founders. Two great examples include The Walt Disney Company and Johnson & Johnson.
Addressing a Trademark Consequence: If your business name is as well like to that of another company operating in the aforementioned industry, a court may social club you to change your name.
Rebranding: In some situations, you lot may find it necessary to rebrand your business. For example, Google used to be chosen "Backrub." Nonetheless, telling people to "Backrub it" instead of "Google it" just doesn't sound quite the aforementioned. If your business organisation proper name is besides generic, you may wish to cull a more memorable name to help you build brand awareness. If y'all believe a rebranding will benefit your company for other reasons, then that as well may require a name modify.

Consider Filing for a DBA

DBA stands for "doing concern every bit" — too known as a fictitious proper noun, trade name, or an assumed name in some states. Keep in heed that filing a DBA does non form a business, only instead forms a sole proprietorship. In some situations, an LLC may want to register a DBA. Maybe your LLC name is JW Enterprises LLC, for example, but you'd like to do business concern nether the name JW Books for your bookstore. JW Enterprises LLC could file for a DBA to employ the proper noun JW Books. JW Books becomes a "nickname" for JW Enterprises LLC, which remain the same company. If you lot don't need a name change, filing for a DBA could be a good pick.

Here are some key factors to consider equally you evaluate whether or not your LLC should file for a DBA:

Will your LLC operate and conduct business concern under its true and legal name? If the reply is "yep," you lot don't need a DBA. If the answer is "no," and so your LLC should file for a DBA.
Are you running multiple businesses or microenterprises under 1 LLC? If the respond is "yes," so filing for a DBA for each business could assistance you lot separate each concern. Even so, you may desire to consider forming a new LLC if your business continues to abound and expands its liability exposure.
Does your LLC have multiple stores, each with unlike names? If so, this is another situation in which you may want to file for a DBA.
Is your business a franchise? If y'all own a Taco BellTM franchise, for example, you'll most likely form an LLC with a proper noun of your choosing. However, as a franchise, you must utilize the Taco Bell name. That ways your LLC would file for a DBA using the name Taco Bell. Keep in mind this is just possible because you lot have a franchise agreement to apply Taco Bell'due south name and trademark. You cannot file for a DBA that would borrow on someone else's trademark.

These are just a few reasons you may consider filing for a DBA, y'all may have others. If yous're unsure whether or not yous should file for a DBA, consult an attorney.

Rebranding: More than Than a Name Alter

Rebranding is more than than just a proper noun change — information technology involves irresolute your image and identity as a business organization and goes far beyond your logo pattern. In fact, your brand determines how people view your business concern and what they associate with your company.

So why might you consider rebranding your business?

Some mutual reasons include: mergers and acquisitions, repositioning the business, changing markets, addressing a scandal or bad reputation, expansion into other territories, updating an outdated image, a new CEO, a creative challenge, or an evolving brand portfolio. If you're considering a rebranding — for whatever reason — be sure to carefully plan and execute your rebranding strategy beyond just taking a new name.

The All-time Time to Alter Your Concern Proper name

Changing your business organization name can involve a significant amount of work so exist certain to thoroughly consider every aspect of the alter before you proceed. If you determine a proper name alter is the right move for your business, the best time to make the alter will depend on your assessment of the post-obit fundamental factors:

Why are you considering a proper name change? Do you lot plan to enter a new market, exercise you demand to resolve a trademark consequence, or do you want to rebrand for another reason? If you're required to change your business concern name, such as for trademark issues, then the best time to brand the alter is immediately after you receive the order to do then.
What will the change cost? Beyond merely alteration your operating agreement or filing for a DBA, consider the costs of creating a new website, logo, letterhead, signage, and anything else that features your visitor name. Based on those estimated costs, are you financially able to change your business name?
Have you weighed the pros and cons of changing your business proper name? Cons may include the price and logistics of changing your business proper noun, while the pros may include building (or rebuilding) consumer trust and/or growing your profits.
Do yous have a brand strategy? Make sure your new business concern proper noun aligns with your company'south make and brand promise.

In some cases, you may be required to change your business proper name and must do so as before long as possible. In other cases, y'all may believe rebranding will help grow your business concern. In those situations, the best time to alter your business name is when the benefits outweigh the cost of rebranding based on your evaluation of the above factors.

Steps to Change the Proper noun of Your LLC

If y'all're ready to change your LLC'southward business name, follow these fundamental steps:

Refer to your operating agreement. Your operating agreement may outline certain procedures you must follow in gild to change the proper noun of your LLC.
Create a member resolution. Documenting your proper name change is of import so you lot retain a written record.
Alter your proper noun with the country. File the appropriate paperwork to modify the name of your LLC with your state. This frequently involves filing an amendment to your articles of organization.
Pay the filing fee. Most states charge a filing fee to process the paperwork associated with your business proper noun modify. While the fee tin vary by country, it typically costs between $20 and $150.
Change your proper noun with the Internal Acquirement Service. After you file your business organisation proper name change with your land and receive state approval, y'all should file your name modify with the IRS. The IRS has dissimilar requirements, depending on your business concern type, and so be sure to visit the IRS website to check out any specific requirements that may apply to your LLC.
Inform everyone of your name modify. Be sure your customers and any other 3rd parties with which you piece of work — including vendors, banks, and credit carte companies — know of your name alter.

Summary

There are many reasons why you might consider changing the name of your LLC. If you evaluate the central factors and decide a name change is right for your business organisation, be sure to follow the steps outlined to a higher place for a shine transition. If you lot're unsure almost changing your business proper name, or need assistance with the process, consult an attorney.

NOTE: This article contains full general legal data, but does non offering legal advice. Always consult an chaser for legal advice.