LLC Check: Everything You Need to Know
An LLC check refers to a name search. When forming and naming your LLC, you want to make sure you are not infringing on anyone's copyright. 3 min read
2. Guidelines to Follow When Naming Your LLC
3. How to Check LLC Names
4. Certificate of Good Standing — and Why It Matters
5. Financial Formalities in LLC
An LLC check refers to a name search. When forming and naming your LLC, you want to make sure you are not infringing on anyone's copyright. Due diligence early on in your business will help you sustain long-term growth and success. If you are considering this beneficial business structure, here is what you should know.
What Is a Limited Liability Company?
As defined by the IRS, a limited liability company or LLC is a business structure that resembles a partnership, offering a limited liability for debts. This is why LLCs are so popular — they offer the best aspects of partnerships and corporations. Like a corporation, LLC owners are protected in terms of their personal assets. Owners, in this case, are referred to as members and operate the LLC with less formality than a corporation.
Guidelines to Follow When Naming Your LLC
When you are naming your business, think about:
- Who your audience will be
- What you offer
- How your target market will find you
When an LLC name is too long or spelled in an odd manner, it can be hard for customers to find you. Once you have narrowed down a list of prospective names, ask friends and family which options they like best. Your name should be unique and clever, as well as relatable. To determine whether or not your favorite names are available, conduct an LLC name search. This will help ensure your name is not infringing on anyone's copyright.
How to Check LLC Names
When naming an LLC, do so in compliance with state regulations. You can search for an LLC name just like any other business name. This will allow you to confirm that your proposed name is not currently active. Wherever your LLC will be formed will determine your search with the secretary of state. Simply input all search parameters and select all relevant options.
Once you enter your desired name, you can determine if similar names are in use. Then conduct an Internet search to see what you can find and whether or not duplicate names exist. It is also recommended that you access the U.S. Patent and Trademark Office database.
Certificate of Good Standing — and Why It Matters
Once your LLC is formed and your name is registered, you will aim for a certificate of good standing. This will indicate whether or not your LLC has filed all the necessary reports and has paid all outstanding taxes/fees. These certificates may also be called a certificate of existence.
It is important to obtain this certificate for a number of reasons:
- If you plan to lend money, proof of good standing is typically required
- It can help you expand your LLC, especially when planning to do business in multiple states
- This can help you avoid state-imposed fees
- A certificate of good standing will also preserve the limited liability
Financial Formalities in LLC
LLC owners should maintain some level of formality, especially in relation to finances. Mixing personal and business finances does not provide any advantages. Doing so would be undermining the very reason why you formed an LLC in the first place. When you form an LLC, you plan to operate as a separate legal entity to yourself. Mixing funds showcases poor accounting practices.
When planning to deposit an LLC check, it is important to ensure customers make out checks properly. However, if a check is made out in your name instead of the LLC's name, you can still deposit that check into the company's account.
- The first way is to write "for deposit only" on the back of the check. You should also include the LLC's bank account number. This is referred to as a restrictive endorsement.
- The second way is to write "pay to ..." followed by your LLC's name. This is what's referred to as a special endorsement.
All aspects of your business are important, but when it comes to your LLC's finances, make sure you develop good habits from the start. Also, seek professional assistance whenever you're unsure of what to do next.
If you need help with an LLC check, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.