Adopting a new name can manifest a host of new compliance challenges for businesses to address
Selecting a name is one of the first and most important decision that a fledgling corporations or LLC faces – and it’s possible they’ll have to make it more than once. A recent installment of Wolters Kluwer CT Corporation’s Expert Insights podcast reviews the many intricate steps that businesses must undertake before executing a successful name change, a complex process that often spans multiple state and federal agencies.
Sandra Feldman, Corporate Attorney at Wolters Kluwer CT Corporation, explains that it’s not unusual for a corporation or LLC to undergo at least one name change over the course of its lifetime. A business might be rechristened to denote new ownership, mirror product line changes, or signal a new direction for the company to boost investor confidence. But prior to issuing a press release or updating any marketing materials, companies interested in changing names should review the LLC or corporation laws governing the state in which they were formed. Some states, for example, maintain a regularly updated list of words or phrases that can’t be used in a name. Once a new moniker is approved, corporations will also have to file the appropriate updates with any foreign states in which they do business.
“If the compliance obligations associated with executing a successful name change seem overwhelming, it may be beneficial to seek the assistance of a trusted partner,” Feldman said. “CT Corporation can assist clients with navigating many of the administrative and regulatory hurdles involved, from checking and reserving a name, to filing the appropriate documents various government agencies.”
The CT Expert Insights podcasts offers regular advice, tips and tools for growing a business directly from the experts at Wolters Kluwer CT Corporation. Previous topics include how to manage business licensing obligations, strategies for incorporation and the expanding regulatory compliance landscape.
