How To Name An LLC
A comprehensive guide on how to name an LLC.
A comprehensive guide on how to name an LLC.
By Douglas Wade, Attorney
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Have a quick question? We answered nearly 2000 FAQs.
This page is one of seven chapters:
Main Page: How to create an LLC
Chapter 1: LLC Answers to Frequently Asked Questions
Chapter 2: LLC Compared to Other Business Structures
Chapter 3: Forming and Managing an LLC, A Comprehensive Guide
Chapter 4: Optimizing Tax Strategies for LLC Pass-Through vs. Corporate Taxation
Chapter 5: How to name your LLC Name Your LLC
Chapter 6: How to write and file an LLC Article of Organization
Chapter 7: How to write an LLC Operating Agreement with Template
When setting up your Limited Liability Company (LLC), one of the first and crucial steps involves choosing an appropriate name. This name will be part of your LLC’s articles of organization, a key document required during the registration process. It is essential to ensure that the name you select isn’t already in use or too similar to existing business names registered with the LLC filing office. Should there be a conflict, your articles of organization may be rejected, hence the importance of planning and verifying the availability of your proposed LLC name early in the process.
Avoiding Existing Business Names
It’s vital to choose an LLC name that is distinct and not already taken by another entity. This involves ensuring that your chosen name does not closely resemble the names of well-known businesses such as Toyota, Canon, Dell, etc. Using a name similar to any famous business could lead to legal challenges, even if the name appears to be available in your state.
Trademark and Service Mark Considerations
In addition to general name availability, you must also consider whether your chosen name infringes on existing trademarks or service marks. If the name you intend to use is identical or similar to another business’s registered trademark or service mark, you could face legal actions for infringement. Such scenarios could not only result in legal battles but also financial liabilities and restrictions on your ability to use the name commercially.
Identifying Your Products or Services
Many businesses use their LLC name or a variant of it to market and sell their products or services. For example, Burger King is known for its Whopper. If you plan to use your business name as a trademark or service mark, consider whether the name might conflict with existing marks that are similar enough to cause confusion in the marketplace.
Conducting a Trademark Search
Before finalizing your LLC name for branding purposes, conduct a thorough trademark search to ascertain if the name is available and does not clash with existing trademarks or service marks, particularly those in related markets or industries. Evaluate whether registering the name as a trademark is justified, considering the costs and benefits. If you decide to proceed, know that managing the registration process yourself can help minimize expenses.
It’s important to handle legal matters related to your proposed LLC name early on, especially if you plan to use this name to market goods or services in the future. Selecting an LLC name without thorough consideration can lead to legal conflicts when your business starts to gain traction and recognition in the market. These conflicts could emerge just as your business is flourishing, potentially disrupting your operations and branding.
Adhering to State-Specific Rules
Your chosen LLC name must meet specific legal requirements set by your state. The requirements for each state can be found on your state’s filing office website. Common state requirements include the inclusion of an LLC designator (e.g., “Limited Liability Company” or “Limited Company”), with some flexibility in capitalization but more stringent rules on abbreviations. For example, most states allow abbreviations like “LLC” or “L.L.C.” and “Ltd.” for “limited,” but abbreviating “liability” is typically not permitted.
Examples of Valid LLC Names
Here are several examples of valid LLC names, illustrating acceptable use of abbreviations and designators:
Be aware that some states require the LLC designator to be placed at the end of the LLC name, e.g., California Cupcakes LLC.
Prohibited and Restricted Words
There are restrictions on using certain words in LLC names, such as terms associated with banking, insurance, or other financial services, which are reserved for specific types of businesses. Additionally, states often prohibit non-professional LLCs from engaging in state-licensed professions (like law, medicine, or engineering) unless they are registered as professional LLCs with appropriate name designators such as “Professional LLC.”
Ensuring Name Uniqueness
Another key requirement is that your LLC name must not be identical or overly similar to any other name already on file with the state LLC filing office. This includes names of domestic LLCs (formed within the state), foreign LLCs (those from another state but registered to do business in the filing state), and names currently reserved for future LLCs. If a name you desire is similar to one on file, some states may allow its use if you obtain written permission from the existing business. However, this can be problematic as the existing business may demand significant compensation or impose strict limitations on the use of the name.
Online Inquiries
If you’ve decided on a name for your LLC, the first step is to check if it’s available. You can often do this quickly and easily through your state’s filing office website, which typically includes a name search feature. This allows you to identify any clear conflicts with existing registered names. Alternatively, you can contact your state LLC filing office directly and inquire over the phone at no cost about the availability of your proposed names.
Written Requests for Name Reservation
In some cases, state offices might require a written request to check name availability. If so, it’s advisable to send a letter requesting that your desired LLC name be reserved if it’s available.
Reasons for a Thorough Search
Performing your own name search is important not only to ensure uniqueness but also to avoid legal issues with trademarks and service marks already in use. This helps prevent conflicts if you later decide to register your LLC name as a trademark or service mark for marketing your products or services.
Self-Help Search Techniques
Here are several methods you can use to check if your proposed LLC name is already in use:
How to Reserve an LLC Name
Once you’ve confirmed the availability of your desired LLC name either online or by contacting your state’s LLC filing office, you can proceed to reserve it. Most states allow you to reserve an LLC name to ensure that no one else can use it during the reservation period. Typically, this period lasts between 30 to 120 days and may cost between $25 to $100. If necessary, you can reserve the name again if you’re unable to file your articles of organization within the first reservation period. Detailed rules about LLC name reservations for each state can be found in the state website.
Steps to Reserve a Name
To reserve a name, start by reviewing the online information provided by your state’s LLC filing office or the materials they have mailed to you. Often, you’ll find a sample or a fill-in-the-blank form for reserving an LLC name, or instructions on how to prepare one from scratch. Some states now also offer the convenience of reserving a name online, which is the quickest and easiest method if available in your state. The state’s fee schedule online will detail the cost and duration of the reservation.
If an online form is not available, you should contact the state LLC filing office directly to request instructions and a physical form to reserve your proposed LLC name.
General Filing Procedures
When you’re ready to officially establish your LLC, you’ll need to prepare and file your articles of organization. It’s essential to consult your state to familiarize yourself with any specific rules or procedures that apply in your state. This will ensure your filing complies with local regulations.
Additional Filing Requirements
In some states, filing the articles of organization may involve additional steps or supplemental forms:
Ensure you are aware of these additional formalities by checking your state, which will guide you through any extra steps required when filing articles of organization in your state.
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