One of the first things you’ll need to tackle as a prospective business owner is the name of your business, and here you’ll find a short guide on how to ensure that you make a decision that’s functional and fitting for your business.
Your LLC’s Identity Counts
A name is more than just a name in the business world, as branding can make or break an otherwise top-shelf product or service before it even gets off the ground. Furthermore, there are rules that you need to follow when picking a name, as your LLC is a unique legal entity and will require a unique identifier. As such, you have to pay as much attention to what you name a business as you do your finances.
Factors To Consider When Naming An LLC
There are many factors to consider when choosing a name for your LLC, but they can broadly be condensed into three important categories.
Due Diligence
The first and most cumbersome step is to do your due diligence and get a sense of what sorts of names have already been taken, as you won’t be able to use a name that’s already been taken. This includes names that vary from existing ones in minor ways, like switching tenses or contractions. You wouldn’t be able to register We Are Meats if there’s already a business called We’re Meats, for example. Whatever name you’re looking into should be pretty distinct from any existing names. You could also consider other factors in the pursuit of due diligence, such as whether a suitable domain name is available for your business website and similar considerations based on what your business might require.
Guidelines and Restrictions
An LLC is a distinct legal entity subject to rules and regulations by the government at different levels. When selecting a name for your LLC, it’s important to check your state’s guidelines regarding LLC names before settling on a name. Some guidelines are pretty much universal, such as:
Not having any vulgar, obscene, or prejudicial language in your LLC name
Not having terms in your LLC name that imply it is a type of registered entity that it isn’t (Inc., Corp., etc.)
Not implying that your LLC is a (or is associated with a) government organization.
Not containing restricted terms based on the state’s list of restricted terms (such as the word bank)
These guidelines and restrictions are non-negotiable and should be taken seriously and in good faith when choosing an LLC name.
Audience Impact & Scalability
While the other two categories of considerations are about constraints put on by outside forces, this one has more to do with making sure the name you choose suits your goals and needs. You’ll need an LLC name that conveys the right message to your target audience in a way that encourages engagement. Having a name that fits the product and sounds trendy can be a major factor in getting the business going. You should also avoid names that limit the scope of your business so it can scale later on.
Conclusion
Now that you understand the importance of your LLC’s name and what to look out for when choosing a name, there’s no time to waste. New businesses are popping up daily, and the sooner you start looking for the perfect name, the better your chances of beating the competition.
