How to Use LLC in Company Name: Everything You Need to Know
How to use LLC in company name is something that every business owner who wishes to start an LLC must know. Regulations may vary from one state to another.3 min read
How to use LLC in company name is something that every business owner who wishes to start a limited liability company (LLC) must know. Choosing a business name does not only have a significant impact on the success of your business; it is also a required procedure in the formation of an LLC. When naming your LLC, you must select a name that ends with “Limited Liability Company” or a variant or abbreviation of the term. Besides this, there are other regulations that apply to the naming process, which may vary from one state to another.
Using LLC in Your Company Name
After you have decided to organize your new business as an LLC, choosing the right business name should be at the top of your to-do list. You have to know what you wish to call your new company before you register your LLC. It is important not to take the task of naming your LLC lightly. Besides giving your business an identity, it also serves as a valuable marketing tool. Therefore, you should spend some time finding the best possible name for your business.
While you can change the name of your LLC in the future, it involves extra effort and hassle. Also, if you have been operating your business under your old LLC name, you may lose all the brand recognition you have built under that name.
When you are filing the Articles of Organization to form an LLC, you must include a term or abbreviation such as “Limited Liability Company,” “LLC,” or “L.L.C.” in your company's name. For marketing purposes, this term or abbreviation is often omitted when the name of your company appears on websites or business cards, or in advertisements.
However, failure to include “LLC” or its variant in the name of your LLC can have negative consequences on its members and managers. If you do not make it clear that your company is an LLC, courts may take it that you and your fellow members have participated in a transaction as individuals and not on behalf of the LLC. As a result, the members or managers of your LLC may be exposed to personal liability.
The best thing to do is to include “LLC” or its equivalent at the end of your LLC's name, even in marketing materials, because “LLC” shows that your company is a corporate entity that protects its members from personal liability. In addition, it is important that the members or managers sign contracts as agents for your LLC and not as individuals.
Choosing a Name for Your LLC
Selecting a name for your LLC is not as easy as choosing a name you like. You must comply with certain legal requirements and make sure your selected name is not already being used by another registered LLC in your state. Before you select a suitable name for your new business, it is a good idea to create a list of potential names. By doing so, you can perform all the necessary name searches in one go. Even if some names on the list are already taken, you will have other options left.
Conducting Business Name Searches
In most states, business owners are not allowed to use a business name that is identical or too similar to the name of another registered company. Check with the appropriate state agency to find out how to conduct a business name search. Many states have online databases of already-registered business names to facilitate quick and easy business name searches. Perform searches for all the potential LLC names on your list to find out which ones are still available.
Legal Requirements for Using an LLC Name
Different states have different legal requirements for using LLC names, but most states require you to do the following:
- Identify your business as an LLC – You must include an LLC designation in the name of your LLC, such as “Limited Liability Company,” “Limited,” or “LLC.”
- Avoid using restricted words – Every state has its own list of words that cannot be included in an LLC name. Examples of words that are commonly restricted include “insurance” and “bank.”
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