When he launched his limited liability company (LLC), he cools a name to that company. Now that name does not fit. This simple guide breaks down how the process of changing the name of a LLC is seen and if it is worth the time, the discomfort and costs to do so.
Can I change my LLC’s name?
Your first question may be whether it is possible to change the legal name under which you registered your limited liability company. The good news is that, yes, the name of a LLC can be changed.
Changing the legal name of its LLC is a more complex process than simply adding a separate name of “doing business such as” that your company can use in addition to its official commercial name. For this reason, you must carefully think about what you expect to obtain from the name change process.
Reasons to change the name of its LLC
Why could a business owner consider a name change from LLC? Increasing the name of a business established for a new name is not a decision that must be made by whim. In most cases, the small business owner decides to change the name of its LLC for one of the following reasons:
- Correction of a typographic error or error in the name of your company
- Keep the name inherited from its llc faithful to the current property of the company
- Represent changes in the identity of the company
You can also change your company’s name if you find a problem with companies that have a name that is too similar to its LLC. This name change of LLC can be voluntary, to avoid confusing customers or being associated with a completely separate company. If the name of the similarities result from a registered trademark matter that becomes a legal issue, a court may demand that the name of its LLC change.
Change the name of its LLC to correct an error
Perhaps he really chose the perfect name the first time, but he did not enter perfectly into his organization articles, business registration form or other legal documents. You must change the name of LLC to do it well.
If he made a spelling error or a typographic error, or a government official made the mistake, but did not notice in time, he can have the option of presenting a statement of correction or correction certificate. If that option does not apply to you, or if the name of LLC is changing more substance, a full name change can be the only way to do well.
LLC name changes to accompany the changes in the property
Approximately time, people and places linked to a business can change. If the old name of your company incorporates any of these elements, it may make sense to alter that name to reflect new realities.
In a multimembré LLC, changes in the company’s property can ask you to eliminate the former owners of the company’s name. This can happen if, for example, one of the original owners withdraws, dies or bought. You can also add a new owner to the name if another member becomes part of its LLC.
A new commercial name that highlights its updated commercial identity
When he first established his LLC, he had a vision of how his limited liability company would be. If its philosophy or its supply of products or services has changed dramatically, the current iteration of its LLC may not coincide with that vision or the original name of LLC. A new name by LLC could cover everything your company does.
The name change process for a limited liability company
There is no way to change one name from LLC for another. On the other hand, if he decides that a change of name is suitable for his business, he must undertake the process of amending his presentation of LLC before the Secretary of State.
Do not let the logistics exceed you. If your preference is to change the legal name of its LLC, you just need to follow this step step by step to make everything official.
1. Present with its new name of LLC
You cannot change your name LC unless you have a new name chosen. Since going through a change of name of LLC can be a nuisance, not to mention an expense, you should not start selecting a new commercial name. Take your time and really think about what you want your new name to become your company.
2. Verify the availability of your new name
Most of the states won allow two companies to have the same name. Before taking any other action to change your name from LLC, you must execute a search in the database of your status to ensure that no other company is using the name you want.
Most of the states do not charge rates to execute searches for commercial names, but it is important to consult with the regulations of their status to find out where and how to access the database. In Texas, for example, you can execute a search through the online commercial service of the Secretary of State for $ 1 per search, or you can execute a search for taxable entity through the TEXAS public accounts for free.
If your new name of LLC is available but is not yet ready to advance with the name change process, you can reserve the commercial name that a fairy wants. You must also reserve a commercial name that you plan to use in the state of Alabama, even if you are ready to complete the process immediately.
Reserve a commercial name does not do it permanently, so if you want to use this name, you must start bar in the next steps. Otherwise, the reservation of your name will expire, and the name will be available again.
3. See your operational agreement and approve a name change resolution
Now that you have identified the name you want, your company needs to decide to change your name. The operating agreement all signed LLC members when launched the company must describe this process. Depending on the terms of your operating agreement, you may have to vote from the members of LLC on whether or not to change the name.
If all in your company are on the same page, the approach to the name change resolution can be as simple as signing a written document in this regard. There may be a cost associated with this action if you have a lawyer or a legal technology company, write this resolution for you.
4. Present a certificate of amendment with the State
Here is the part where your name change becomes legal and official: when you have an amendment to its LLC forms. Changing the name of its LLC requires that update the document used to establish a LLC, usually called organization articles or organization certificate.
Presenting an amendment to your organization articles cannot not be a difficult process. In California and Georgia, it is a form of a page; In New York and Missouri, it is a two -page form.
Be prepared to pay a presentation rate for an amendment certificate. The presentation rate could vary from only $ 15 in Montana to $ 200 in Delaware and $ 220 in Washington, DC, you may need your organization articles within 30 days after the approval of your name change resolution.
5. Do not forget to amend your operational agreement
The official process of changing the legal name of its LLC is about presenting its amendment certificate, but the practical process of making this name change just starting. Be sure to update the commercial name in the operating agreement that consulted when planning the name change.
6. Update your name in your licenses, bank accounts and more
He is now ready to pass to update the name of his business in everything else. If your business requests special licenses, be sure to update those license agencies with your new name of LLC to keep your information updated. You must also update your name in tax entities at the state and local level, as well as at the federal level (IRS).
The bank accounts of your business should also be changed to reflect the updated name of your company. You must also ensure that your registered agent is aware of the name change.
Changing your name in these official listings and accounts sometimes requires sending a copy of your amendment certificate.
The other areas in which you need to change its name from LLC are more varied and less formal. In a nutshell, if the name of its LLC changes, you must also change everything that includes that name, such as:
- Signaling
- Company’s letterhead
- Marketing materials and brand merchandise
- Website domain name and Internet presence
As you can guess, the cost of this change can vary according to the great merchandise of the brand that your company has. If your company has your own screen printing machine, you can create your own brand merchandise at home with less expenses.
The pros and cons of changing their name from LLC
The greatest benefit of changing the name of its LLC is to know that the name of your company fits perfectly. Given the importance of your company’s first impressions and capacity to stay in customer minds, having the right name is priceless.
The disadvantages of changing your company’s name include:
- The discomfort
- The time that has completed the name change process
- Costs, which may include presentation rates, legal services, professional business training services and marketing and marketing efforts
- Any confusion caused by the name swap
Is a name change the best option for your business?
Given the disadvantages of the thesis, many companies doubt to change their legal name. In some circumstances, a better option could be:
- Add a DBA to its LLC: add a DBA (“do business like”) allows you to do business with another name without changing the legal name of its LLC.
- Configure a LLC series: in a LLC series, you can configure it as many different children’s LLC, all under the umbrella or a father LLC, as you need. Instead of checking your company’s name to include each component of your business, you can segment LLC that cover different lines of your work.
Conclusion
Now that he knows what is required to change his name from LLC, he can make an educated decision about himself and when to make this change. If changing the name of your company will make it happy or make your business more successful, then it is likely to have to complete some forms. Otherwise, you can consider the options that as a DBA can achieve the same result with less problems.
LLC resources
How to start a LLC in California
How to start a LLC in Florida
How to start a LLC in Texas
How to start a LLC in New York
