The name of your Limited Liability Company (LLC) must meet certain criteria. It’s important to ensure that your chosen name follows state regulations and helps to establish the nature of your business entity.
Required Designations in LLC Names
Generally, the name has to include the term “Limited Liability Company” or “LLC”. The name can’t be taken by another business in your state. In most states, it is a legal requirement for LLCs to include "LLC" or its equivalent in their business name. This helps distinguish the business’s legal structure. An LLC provides limited personal liability protection to its business owner. The business owner’s assets are protected if sued. An LLC is popular for small businesses since it’s relatively easy to set up and maintain. You don’t legally need “LLC” in the domain name for your business. Most websites don’t include a corporate designator in their domain name.
Choosing the Right LLC Name
Choosing an LLC name isn’t easy. Make sure your potential LLC Name is descriptive, unique in your state, accurately reflects your products/services, and doesn’t include indicators of other business types or words referring to specialized businesses. Search the state database for anything similar to avoid mistakes. “LLC” shows your company is a corporate entity protecting members from personal liability. Sign contracts as agents of your LLC, not as individuals.
Considerations for Established Businesses
If your business is years old, you may want to omit "Limited Liability Company" to avoid a change. Most states require an LLC designation in the company name registered as an LLC. The designations vary but generally include "Limited Liability Company," "Limited Liability Co." "LLC," or "Limited." Each state also has restricted words that cannot be used as part of an LLC name like "bank" and "insurance".
Titles and Management
What is the title of an LLC owner? You’re referred to as a member, not an owner. When forming, choose manager-managed or member-managed.
Operating Agreement Contents
The operating agreement is a crucial document for your LLC. It should include a description of the business, owner names, ownership percentage, management structure, and decision-making rules. It should also include a buy-sell agreement outlining what happens if an owner sells or it dissolves.
Distinction Between LLC and Business Names
It’s common to confuse LLC and business names. The LLC name is the legal entity, whereas the business name markets your brand. They don’t have to match. For example, Catchy Cats LLC may run Cats Paws Supplies and Cat Au Lait. The business names reflect different products/services, but the LLC name indicates the same entity owns both. Sometimes you’ll need to list both.