4 Considerations for Naming Your LLC
You want a memorable name when you christen your limited liability company (LLC) to attract and keep customers in the "age of the customer." As businesses compete for market share, the first part of your battle to compete within your sector is creating the right legal structure for your company.
Americans spent, on average, $82 per day in February of 2015. How much of that money comes your way depends, in part, on how you structure your business. These guidelines will help you navigate through the registration, naming, and trademarks of becoming an LLC, so you can avoid frustrating delays and dead ends.
1. Register Your Name Within Your State
There are three rules for LLCs. The LLC must:
- Be different from an existing LLC in your state;
- Indicate that it's an LLC within the name ("LLC" or Limited Company");
- And does not include words restricted by your state (such as "bank" and "insurance").
Your business name is automatically registered within your state when you apply for an LLC, so you do not have to go through a separate process. Tell a customer that you’re “registered with the state” and they’ll feel more reassured.
2. Naming Basics
Naming is all about clarity, emotion, and uniqueness. Plus, customers don’t like to think they’ve been misled into purchasing a service or product because of a company name. Ask yourself the following questions when naming your LLC:
- How will your name look? In print, as part of a logo, on social media, on your website?
- What connotations does it evoke? Is your name too formal or not formal enough? Does it reflect your business philosophy and culture? Does it appeal to your target market?
- Is it unique? Pick a name that hasn’t been claimed by others, both online or offline. A quick domain name search will alert you to any existing use.
- Is it simple? Remember, the more your name speaks to consumers, the less effort you will need to explain it. If your customers are confused by your LLC name, they won’t stay customers for very long. According to naming experts, you should give priority to authentic words or combinations of words over fantasy or nonsense words because people choose words they can relate to and understand.
3. Think About Trademarks
If your business name is entitled to trademark protection, trademark law will prevent another business from using a name or logo that is likely to be confused with your business name. If your business is local service or in the retail sector, take advantage of this.
4. Consider Other Languages
The use of a foreign word in your LLC may jump-start business. Using a word like “casa,” which is Spanish for house, will associate your new company name with something welcoming and comfortable to those that are familiar with the word. There are 37 million Spanish speakers in the United States today, so capitalizing on this demographic can be advantageous for many proprietors.
An online legal service, such as Legal Zoom, can be of immense help in cutting through the red tape and making sure every requirement is met when you set up an LLC. But there’s more to customer interaction than completing the right legal forms. Follow the above steps and you'll be on your way to business success.
