Why LLC name matters?
Your LLC Name is more than just a label- it's first impression people will have of your business. A strong, clear, and easy to pronounce name can make your business look professional and trustworthy. it helps to remember your company to customer, and also understand what you do, and even find you online easily. on the other hand, a bad confusing name can turn people or cause a legal problems. if your name is very similar to another company's name or includes restricted words, it could rejected by the state or even get you into legal trouble that's why to pick a name that is simple, easy to remember, legally safe, and fits your brand.
15 Things Not to Do When Naming Your LLC
Setting up an LLC is an exciting experience for any entrepreneur. The initial thing that you would have to do is give a name to the business. Your name matters as it makes your brand and gives the initial impression about the business to the customers. Yet, the majority of the individuals make dumb mistakes while giving a name to their LLC, which could lead to legal problems or damage the brand in the future.
At LLC SETTER we help people form their U.S. LLC fast and correctly. One of the most important steps of doing so is naming it correctly. Following are 15 common mistakes to avoid while naming your LLC:
1. Disregarding State Requirements
- Each state in the U.S. has its own laws about what you can and can't include in your LLC name.
- Breaking those laws will have your name rejected.
- Check your state's naming laws first.
2. Using Restricted Words
- Words like "Bank," "Insurance," or "University" typically have special approval processes to be done.
- Using them without approval will have your application held up or denied.
3. Being a Name Already Used
- Your LLC name must be unique.
- If someone else already has the same or very similar name, your application will be denied.
- Always search your state's business name database before making a decision.
4. Leaving Out Adding "LLC"
- You must include "LLC" or "Limited Liability Company" in your company name to show it's an officially recognized.
- LLC. Leaving this out is an error.
5. Not Thinking About Future Expansion
- Select a name that will be suitable for your long-term goals.
- If your business name is too niche, it can be detrimental to your business
- when down the line, you grow or expand.
6. Selecting A Name That Is Hard To Spell or Pronounce
- When people cannot spell or pronounce your business name, they might not remember it—or misspell it while looking online.
- Select something that is easily understandable and spelled out.
7. Having A Too General Name
- A too-general name like "Best Services LLC" does not say much about what you actually do.
- Try to choose one that sounds like your company and is distinctive.
8. Not Doing the Trademark Search
- Even if your LLC name is available in your state, it can be federally trademarked.
- Using a trademark name will land you in legal trouble.
9. Not Considering Your Target Market
- Your name must have an appeal to the audience you are targeting.
- Make sure it has an appeal to your target market and clients.
10. Too Trendy
- Trendy names are current today but could be old news tomorrow.
- Choose a name that can endure the passage of time and yet be timely.
11. Failure to Consider the Emotional Resonance
- Good names conjure up something.
- If a name conjures up something or means something,
- it can assist in making customers remember and believe in you.
12. Making It Hard to Spell or Abbreviate
- Avoid having unusual spellings or obtuse acronyms unless they are absolutely obvious.
- Make it easy to remember and simple.
13. Not Checking the Domain Name
- Before you decide on an LLC name, check if the website domain (yourbusinessname.com, for instance) is available.
- Using the same name makes it easier for individuals to search and locate you online.
LLC SETTER can help you acquire the perfect domain.
14. Skipping Social Media Handles
- Similar to website domains, it's a good idea to have matching usernames on social networks such as Instagram, Facebook, and LinkedIn.
- Make sure the name isn't already taken on social media.
15. Rash Judgment
- Your LLC name is a significant aspect of your brand.
- Don't be in a hurry.
- Take some time to think, research, and experiment with your name prior to finalizing it.
Conclusion
- Choosing the perfect name for your LLC is a process that requires time and thought.
- Steer clear of these mistakes to avoid future legal problems, branding problems, and additional expense.
Here at LLC SETTER, we make it easy and de-mystify forming your U.S. LLC. From creating the perfect name through ensuring everything is just right, we've got you covered. Start your LLC today at www.llcsetter.com.
FAQ's
1. What is the bare minimum of regulations regarding naming an LLC in the U.S.?
The laws differ from state to state but, in general, your LLC name must have "LLC" or "Limited Liability Company" included, not be the same as other names in your state, and not contain off-limits words like "Bank" or "University" unless specifically allowed.
2. Am I allowed to name my LLC the same as another company's name in another state?
Yes, but as long as the other company isn't within the same state and it isn't trademarked. But it's still a gamble if it's well known.
3. What are limited words when naming an LLC?
Few words are "Bank," "Attorney," "Doctor," or "Insurance." These tend to require additional paperwork or professional licenses for legal use.
4. Why do I need to put "LLC" in the name?
Adding "LLC" shows that your business is lawfully established as a limited liability company, which protects your personal assets and gives credibility.
5. How do I check if my name for LLC is available?
You may search your desired name in your state business entity database. The majority of states offer this service online. Name search assistance may also be provided by LLC SETTER.
6. What will I do if I pick a name that is a trademarked name as it is currently?
You can be sued for trademark infringement and will be compelled to rebrand and pay damages. Always conduct a search of the federal trademarks on the USPTO website.
7. Must I buy a domain name prior to filing to register my LLC?
No, but strongly recommended that you get your domain name in order to avoid someone beating you to it. It sets up your web presence on day one.
8. What if my business expands beyond my niche?
Choose a name that keeps some possibilities open for future expansions. Do not choose too specific a name that would shut down future products or expansions.
9. Can I change the name of my LLC later?
Yes, but it takes paperwork, fees, and notification to your records with the IRS, banks, vendors, and others. It is easier to get it right the first time.