Choosing a company name is an exciting yet challenging stage in launching a new venture. Whether a name is already in use is one of the most crucial factors to take into account while choosing one. You shouldn’t spend time or money branding and marketing a name that is already registered to another company. Here are some pointers for preventing the use of your company name.
1. Perform a name search
It’s crucial to run a name search before deciding on a name. To ensure that the name is not already registered by another company in the state, check with the Minnesota Secretary of State. Through the website of the Secretary of State, you can complete this online. You’ll have to pick a different name if the first one is already taken.
It is crucial to investigate trademark availability in addition to contacting the Secretary of State. A trademark is anything that identifies and distinguishes the source of goods or services, whether it be a term, phrase, symbol, or design. On the website of the United States Patent and Trademark Office (USPTO), you can determine whether a trademark is available. If the name is already protected by a trademark, you might have to choose another name or ask the trademark holder for permission to use it.
You will have to choose between forming a sole proprietorship and an LLC when beginning a firm. The simplest and most affordable business structure is a sole proprietorship, however this has no liability protection. On the other hand, an LLC protects the owners against responsibility and is a distinct legal entity from the owners. This implies that the LLC has legal capacity to negotiate, suit, and be sued. It can also possess property. Additionally, since your business name will be registered with the state, becoming an LLC might assist you protect it.
Different taxes apply to LLCs and sole proprietorships. Although LLCs are not subject to state income taxation in Minnesota, they are. LLCs have the option of being taxed as a partnership, S corporation, C corporation, or a sole proprietorship. Each option has different tax ramifications, so it’s crucial to speak with a tax expert to decide which is best for your company.
In conclusion, picking a company name is a significant choice that needs to be carefully thought through. Conduct a name search and check trademark availability to make sure your business name is available. To secure your company name and to benefit from the tax advantages of this business structure, think about creating an LLC. By using these suggestions, you may pick a distinctive and memorable name for your company that will make you stand out in the crowd.
You must adhere to the precise conditions outlined by the laws of your state in order to create an LLC. You must select a distinctive business name, submit articles of organization to your state, designate a registered agent, and draft an operating agreement describing the management and ownership arrangements for your company. Additionally, you will need to get any licenses and permits your firm may require. To make sure you are completing all legal requirements for incorporating an LLC, it is advised to consult a lawyer or accountant.