The name you choose for your business is significant. It defines your brand and differentiates your company from the competition. But if it isn’t helping you achieve these goals, or you’ve decided to chart a different course for your company, it may be time to find a new name for your business.
But how do you change your business name? And, if you operate an LLC or a corporation, can you change the name of your business?
Let’s explore these and other business name change FAQs.
Why would I want to change my company’s name?
There are several reasons why you may wish to change your company’s name. You may want to appeal to a new audience, reflect an expansion of your offerings or location, or perhaps you acquired a new business. Another common reason for a name change is a brand refresh or a desire to attract a new generation of customers. Negative publicity is also a prompt for a name change. Or maybe you just chose the wrong name when you formed your business and it’s time for something new.
Can I change the name of my LLC or corporation?
Yes. To change the name of your LLC or corporation, you will need to file “Articles of Amendment” with your state. Once approved, you can start operating under the new name.
However, there are a few steps you should take first which we cover next.
How do I change my LLC or corporation’s business name?
NName amendment requires proper research. Follow these five steps to properly amend the name of your LLC or corporation.
1. Approve a “Resolution to Change Business Name”
The name change must be approved internally before you file. For an LLC, the members or managers approve it. For a corporation, the board of directors adopts a resolution and the shareholders approve it. Check your operating agreement or bylaws for the required process.
2. Check that the name is available in each state where you operate
Conduct an official inquiry to see that your new name is available in the state(s) where you do business. In addition to state business entity law naming rules, you will need to verify that your new business name does not infringe on another business’ trademark rights. If your LLC or corporation name will be used as a trademark, you may want to protect its rights too. A trusted advisor who is familiar with trademark law can help you with that.
3. Research each state’s naming provisions
Each state has its own naming rules, so make sure your new name complies. States restrict certain words, and the restricted words differ by state. They also limit names that are "deceptively similar" to an existing business name. Most states also require the name to include the entity type, such as "LLC" or "Inc."
4. File Articles of Amendment with the state
Once you've approved the name change, confirmed the name is available, and checked state naming rules, you can file Articles of Amendment. This is the document that officially changes your LLC or corporation's legal name. Prepare the filing, pay the state filing fee, and submit it to the state where your business was formed. The new name takes effect once the state approves the amendment.
5. Update your registrations in other states
If your LLC or corporation is registered to do business in other states, file a name amendment in each of those states after the state where your business was formed approves the change. Many states call this an amended certificate of authority. If your new name isn’t available in a state, you may need to operate there under an assumed name.
Does a name change affect my EIN or contracts?
No. A name change doesn’t create a new business. Your LLC or corporation keeps the same contracts, assets, and obligations. Confirm that you can keep your EIN, it depends on whether additional changes accompany the name change. You’ll still need to notify the IRS and let customers, vendors, and lenders know about the new name.