Is it permissible to use “Co” in your business name? is one of the most frequently asked questions when it comes to picking the ideal company name. The short answer is yes, but it depends on the type of business structure you have whether you can use “Co” in your company name.
The use of “Co” is appropriate and legal if you are creating a corporation. The prefix “co” stands for “company,” and it is frequently used in business names. A corporation offers its stockholders limited liability protection and is a distinct legal entity from its owners. You must submit articles of incorporation to the state and pay a fee in order to create a corporation.
The corporate tax rate, which is now 21%, is also applicable to C corporations. This implies that in addition to the shareholders paying taxes on dividends received, the corporation also pays taxes on its profits. C corporations, however, can also offer some tax advantages, such as the deduction of employee perks and costs.
The word “Co” should not be used when starting a partnership or a sole proprietorship. Partnerships and sole proprietorships do not offer limited liability protection since they are not distinct legal entities from their owners. Instead, the owners are individually responsible for the debts and responsibilities of the company.
In order to conduct business lawfully in Illinois, you must also select the appropriate business structure and name. The location and kind of the business determine how much a business license in Illinois costs. If you are selling on Etsy in Illinois, you do not need a business license if you are operating as a hobbyist or if your sales are below a specific threshold. For instance, in Chicago, the cost for a business license ranges from $125 to $500, depending on the type of operation. However, you will require a business license if you are doing business and have exceeded the sales level.
In conclusion, if you are founding a corporation, it is acceptable to use “Co” in your business name. However, it is inappropriate if you are starting a partnership or a sole proprietorship. The cost of a business license varies depending on the region and type of business, and it is moreover necessary to obtain one in order to conduct lawful business in Illinois. Check if you require a business license based on your sales threshold if you sell on Etsy in Illinois.