Considerations for Using Personal Names
If you are a sole proprietor and operate the business by yourself, it is appropriate to use your name for the business. Professionals such as coaches, artists, writers, musicians, and others can name their businesses after themselves. It helps relate your products directly to you.
However, if your business operations involve producing goods for sale, and you intend to form a company, it’s better to use a different name for the following reasons:
- Your name might not be memorable, making it difficult for customers to remember it when they need your services or products.
- When the business starts growing, the name might become inappropriate for its size.
LLC Registration and Branding Strategies
State registration and legislation permit limited liability companies to operate, and each state has its own set of rules controlling them.
For service providers who act as both the product and the face of the company, naming your company after yourself is a great marketing strategy. Attorney Ugo Lord often advises his clients to register the LLC in their personal name for legal liability purposes but operate the company under a DBA—“doing business as”—with a different name.
To change an LLC business name with the IRS, the LLC follows the process that matches how it is being taxed.
Domain Names and Trademarks
When to put “LLC” in a domain name?
- If you’ve found an absolutely stellar domain name (and it’s somewhat short), but it’s already taken, you may want to consider putting “LLC” in your domain name.
You should always place the initials “LLC” after your business name—including placing it on your correspondence, contracts, forms, business cards, website, signs, and marketing materials.
By common law, a logo is trademarked as soon as it’s used in commerce.
The Pros and Cons of Naming an LLC After Yourself
Naming an LLC after yourself connects the company with your brand.
Pros:
- If you are well-known, this establishes credibility.
- It’s also easy to remember.
- There’s personal pride in naming an LLC after yourself.
Cons:
- The name may not be memorable or appropriate as the company grows.
- An alternative is using your name legally but operating publicly under a different DBA name.
The Decision to Use a Personal Name for an LLC
If you are a sole proprietor operating the business by yourself, using your name for the business is appropriate.
Operating an LLC using a personal name can provide liability protection.
- Pros include ease of getting a business bank account approved.
- Cons are needing to use your full legal name and register the business with the state.
You should search an online database with the secretary of state where you intend to organize to see if your desired company name conflicts with an existing name.
LLC Naming Requirements and Legal Considerations
Your LLC name matters as that is the name by which your company will be known.
To avoid legal issues:
- Choose a distinctive, memorable name.
- A generic name may make branding difficult.
- An obscure name may not be memorable.
It’s a requirement in many states to put LLC in your business name. Putting "LLC" in your name can help solidify the legal position. Other reasons include filing Articles of Organization and including an LLC designator like "Limited Liability Company" or "LLC."
You need an original LLC name not used by another company. Attorney Ugo Lord suggests clients register their LLC in their personal name for liability benefits but run the company under a DBA – Doing Business As, with another name.