Overview
Changing the name of a business can be a significant step for any company. It requires strategic planning and careful execution. Here are the steps to take when considering a name change:
- Define your need to change the name.
- Conduct research to ensure the new name embodies your vision.
- Chart the path for the change.
- File paperwork with your state agency.
- Alter the name on your accounts, contracts, and marketing materials.
- Notify the state to change the legal business name.
- Contact the IRS for federal tax purposes.
- Corporations will mark the name change box on their tax return.
- Determine if you need a new EIN.
- Communicate the change to employees first.
- Inventory your marketing materials.
- Announce it publicly in a multi-channel approach.
Notify the state to change the legal business name. Contact the IRS for federal tax purposes. Determine if you need a new EIN. Communicate the change to employees first. Announce it publicly in a multi-channel approach.
Costs and Timing
Cost to Rename a Business
Most small and medium-sized businesses can expect to invest $150,000 to $300,000 and six to eight months to transform their brand. Studies show the average B2B business spends about 5 percent of their revenue on marketing. With that in mind, an average rebrand will cost anywhere between 10 and 20 percent of your marketing budget.
Most states charge a filing fee to process the paperwork associated with your business name change. It typically costs between $20 and $150.
Timeframe for Changing a Business Name
The IRS typically takes about two months to register a business name change. To avoid tax issues, give yourself at least three months of lead time before federal taxes are due.
Changing Your Business Name with the IRS
Change your name with the Internal Revenue Service by filing a document called “Articles of Amendment.” When approved, your company will operate under its new name.
Rebranding Your Business
Rebranding can elevate an unknown company to an unforgettable brand overnight. To answer common questions and provide guidance, this guide outlines the cost, duration, and examples of successful name changes, along with explaining how to propel your company to a new level.
Legal and Communication Considerations
Be certain the name change benefits the business and its customer base before proceeding. Research the legal requirements and understand the implications of the name change. Communicate the change effectively, starting with employees and moving to a public, multi-channel announcement.