So far, we’ve covered the creative side of finding new names for your small business. There are, though, some more practical considerations. These are broadly associated with your business plan and sort of business.
So far, we’ve covered the creative side of finding new names for your small business. There are, though, some more practical considerations. These are broadly associated with your business plan and sort of business.
1. Formal business structures
How you structure your business determines which naming rules you’ll need to follow. There are stricter guidelines in situ for firms with these two formal structures:
- Limited Liability Companies (LLC)
- C-Corporations
- Limited Liability Corporations
Setting up shop as an LLC may be a common choice for little business owners. The structure helps protect personal assets if a corporation faces action.
If you are doing structure your company as an LLC, there are particular business naming rules. They differ from state to state, but there are a couple of which apply just about everywhere.
Firstly, company names must include the phrase ‘limited liability company’ or one among the acronyms ‘LLC’ or ‘L.L.C’. It’s also forbidden to call your business in a way that it's going to get confused with an agency. Finally, you'll need further dispensation and special arrangements to use certain words. These include things like ‘University’, ‘Bank’, and ‘Attorney’.
C-Corporations
A C-corporation may be a more complicated entity than an LLC. It goes further to guard a business owner’s personal assets and sometimes has shareholders, officers, and more. Once more, there are state-level rules for naming this sort of company.
The most widespread requirement is that name a business must include one among four phrases. These are ‘corporation’, ‘company’, incorporated’, or ‘limited’. Abbreviations of the terms – e.g., corp. – also are allowed.
Once again, your name can’t appear to be that of a government body. Finally, too, any moniker must be distinguishable from existing organizations in your state.
2. Informal business structures
Lots of startups choose a less formal business structure. If you’re a 1 or two-person outfit, you’re presumably to line up as a sole proprietorship or a partnership. There are fewer rules for these sorts of businesses. That doesn’t mean there aren’t any, though.
Sole proprietorship
There’s one cardinal rule for naming a sole proprietorship. That’s that your firm must operate under the surname of its owner – i.e., you. You can, however, trade under a separate name if you file for a DBA.
DBA stands for ‘doing business as’. It’s how you'll trade under a politician, legal, name that isn’t merely your surname.
Partnerships
Partnerships are almost like sole proprietorships. The sole difference is that they need two or more owners, instead of one. Once more, registered partnership names must include the surnames of these owners. Filing for a DBA is how you'll trade under a special name.
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