Unfortunately, the process is trickier than you might realize in today's business environment. You've got legal, marketing and even internet-related issues to ponder.
Fortunately, a handful of tips can make the process less stressful and more likely to produce in the end a good name.
Tip #1: Google Your New Name
Here's a first tip. You should Google your new limited liability company name, putting the entire name into quotation marks, to see if somewhere someone already uses the name you've selected.
If you're thinking about opening a new bookkeeping firm and want to use the name "Mountaintop Bookkeeping", for example, Google on both "Mountaintop Bookkeeping" and the full legal name you're likely to use such as "Mountaintop Bookkeeping LLC."
You want a name that isn't already being used... obviously.
Tip #2: Verify Your New Name Is Different Enough
All states require new limited liability company names to be enough different from the names used by existing limited liability companies registered in the state so that no confusion results.
You probably can't name your business "Advantage Property Management LLC" if someone else has named their business "Advantage Properties Management LLC," for example.
To check out the names of existing limited liability companies in your state, visit your state's secretary of state web site and find the web site's directory of existing corporations and limited liability companies. Then, search that directory for names similar to your desired name. Make sure no existing name is deceptively close to what you want to use.
Tip #3: Identify Your LLC Status Correctly
Within your limited liability company name, you'll need to include words, phrases or acronyms that identify your entity as a limited liability company. For example, you might append the acronym "LLC" to the end of your business name.
Different states have different rules about which words, phrases or acronyms you should use. But usually, you can employ the acronyms or phrases, "Limited Liability Company," "Ltd. Liability Co.," "LLC," or "L.L.C."
One factor you should consider, however, is whether there's a chance you'll operate in another state. If that's a possibility, you want to make sure your LLC name works both in your home state and in the other states in which you're likely to do business.
Note: The acronym "LLC" works in all fifty states.
Tip #4: Consider Your Future Web Site Name
Even if you're not currently planning on setting up a web site for your new business, you may want to do so in the future. Web sites can often become powerful marketing tools for small businesses (because so many potential customers and clients now use the web as a replacement for the yellow pages directory).
This means you should consider your web site name as you think about your business name. You may want a business name that works (at least reasonably well) as a domain name.
You need to be careful about making a domain name too long or hard to spell. That said, domain names that resemble the phrases that potential customers might Google or Yahoo can be very useful.
If you're opening an landscaping business in a town named Arlington, for example, a web site name like ArlingtonLandscaping dot com will help your search engine marketing--which means you may want to name your business Arlington Landscaping LLC.
Tip #5: Consider Your Email Domain Name
And a related point about Internet domain names: What makes for a good domain name for search engine marketing purposes sometimes doesn't make as much sense for email addresses. For email addresses (which you'll be giving out all the time verbally) you want something that people can easily, correctly interpret, and not unintentionally misspell.
In the first days of the Internet age--the mid 1990s--I foolishly choose to use my first name, middle initial and last name for my CPA firm's web site. Unfortunately, my parents picked as my first name one that has several possible spellings. And my middle initial can easily be missed or misread as a number. Predictably, I have had endless troubles with the domain name and web site address stephenlnelson dot com. Ugh.
What is a limited liability company? This type of company is a business entity that is inexpensive and easy to create. An LLC is a lawful corporate entity that establishes ownership to each member of the LLC according to percentages. The protection you receive by setting up a limited liability company is worth the little paperwork and time involved to set it all up.
Regulations are almost non-existent with an LLC - one of the reasons this type of business setup is so popular and practical for a wide range of businesses. The less hassles you have to deal with, the better. It will be much easier to run your business if you don't have to deal with too many bureaucratic problems or ridiculous amounts of paperwork.
A limited liability company has many advantages over other corporate entities, especially for smaller businesses and startups. First of all, you don't have to spend a lot of money to run a company as an LLC.
Another reason many people decide to create a limited liability company is to avoid a large amount of taxation. An LLC is not taxed as an entity. Instead, the members are taxed according to the percentage of the company that they own. This is an advantage for several reasons.
For one, startups always lose money, but if you form as a limited liability company the prorated portion of the loss goes on your personal tax return. In the event that you have no personal income, you can choose to either roll the loss forward to offset income you make in the future, or apply the loss retroactively over your past three tax returns.
This type of taxation reduces your adjusted gross income and could grant you a much-needed refund. For many new companies, this can be very helpful. A limited liability company is superior to other business entities for tax reasons alone. With other corporations, the company as a whole is taxed, which means you pay tax on all income - you'll pay personal income tax on your own earnings and for the company. Double taxation can get very expensive.
An LLC formation is beneficial in many different circumstances, no matter what the business. The only time it doesn't work well is if you plan on having shareholders, as outside investors can't always invest in a limited liability corporation. An LLC formation, however, works in a whole host of circumstances and is applicable to most small businesses and startups.
If you want to form an LLC, it's not a difficult process to undergo. To form an LLC, your company doesn't require a large investment of capital and the procedure is fairly simple. A limited liability corporation provides protection for a new company and lowers taxation amounts. Legally, it's considered a legitimate business formation and will make it easier for you to run all aspects of your business efficiently and competently.
There are other business entities that you can form, but for most people a limited liability company provides all the benefits that are needed to operate their business on a daily basis and save money in the process.
Both Stephen Nelson & Garry Neale are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Stephen Nelson has sinced written about articles on various topics from Finances, Setting Up Company and Tax Deductions. Seattle CPA Stephen L. Nelson wrote QuickBooks for Dummies and edits the do-it-yourself and. Stephen Nelson's top article generates over 90500 views. to your Favourites.
Garry Neale has sinced written about articles on various topics from Virtual Private Network, Human Growth Hormone and Finances. To learn more about limited liability companies, check out the .. Garry Neale's top article generates over 27100 views. to your Favourites.