LLC Titles: Everything You Need to Know
LLC titles are intended to be adaptable in their possession, tax collection and administration.3 min read
LLC Titles: Everything You Need to Know
LLC titles are important as the title of your LLC can make or break your company. It can be vital to your company to go with a company name that can be branded, whether you are providing services or selling products of some kind. Regardless of what type of LLC you are running, it all starts with the name of your business. With that being said, you’ll want to keep in mind some requirements when determining what the title of your LLC is going to be.
Official Names for LLC Owners and Managers
If you claim all or part of a LLC, you are known as a sole proprietor. While you haven’t set up a sole proprietorship, you are still the single owner of the LLC itself. Therefore, you are at the top of the hierarchy. If you choose to hire employees or even directors, they will all report to you. LLCs can have only one person managing it or several individuals. In some LLCs, directors oversee the company. These directors are not managers but rather directors chosen by the manager (owner) of the LLC who assist in controlling the overall operations of the business.
Good Choices for Titles vs. Titles to Avoid
There are three important things you should remember when picking a title for LLC. To begin with, there are certain titles that are better than others. If you include something like ‘CEO,’ ‘President,’ or ‘Principal’ in the title, this may show that you have more authority. Further, you’ll have to indicate LLC or L.L.C. at the end of your title. Most importantly, you’ll want to pick a name that is available to you! Before you start getting creative and jotting down title ideas, you’ll want to run searches on the Secretary of State’s website to ensure that the name ideas you have are free and available for use. While you’re at it, look online and ensure that the domain name is free to use so that you can have a matching website address.
Some LLC titles that are unseemly or could cause you issues include:
- Titles with the word ‘accomplice’
- Titles that would otherwise steer potential clients and customers away, i.e., titles that are inappropriate, uninviting, and otherwise lack a sense of professionalism.
- Based on state law (in most states), you cannot have an LLC with certain words in it; this includes but is not limited to University, School, Bank, Insurance, etc. These types of names are generally restricted. You’ll want to check with your respective Secretary of State’s website to ensure that you are fully aware of what terms can and cannot be used.
- Additionally, remember that, if you are not a doctor, you cannot utilize the word ‘Doctor.’ Similarly, if you are not a lawyer, you cannot utilize the term ‘Lawyer’ or ‘Legal Services’ in your title name.
As always, do your research beforehand. Take your time and understand the state requirements before creating your LLC title. This name will be with you for a long time, so you want to ensure that you not only follow the requirements of the law, but also choose a name that will work for you.
Legal Title Issues
When you file for state recognition of your new LLC, you typically must designate how your company will be managed: either member-managed when you have one or more members manage the company, or manager-managed when you hire a professional who is not a member to make operational decisions for your company. When your top executive signs legal documents, contracts or agreements, they must use their legal title to properly execute these documents.
Business Cards and Communications
With regard to business cards, be sure to keep it simple. If you are the sole proprietor in your LLC, you can call yourself whatever you like – CEO, President, etc. But be professional and, as always, remain consistent. If your business card indicates that you are the CEO, then make sure that you send emails with that title in your signature line so not to confuse your current or prospective clients.
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