A crucial first step in creating your brand identity is naming your company. Additionally, it is essential to confirm that the name you select is legitimately permitted for usage. The majority of firms register a Doing Business As (DBA) name and function as a legal entity, such as a Limited Liability Company (LLC) or a corporation. Is it possible for my DBA and LLC to share the same name? The answer is that your DBA and LLC can share a name, but there are a few things to take into account.
The first thing you should keep in mind is that a DBA is only a name you use to do business, not a legal corporation. A legal entity that offers protection from personal liability is an LLC, on the other hand. Even though your LLC and DBA may share a name, they are two distinct entities with distinct legal implications.
Second, you can ponder whether your DBA requires a distinct Employer Identification Number (EIN). You do not require a separate EIN for your DBA, is the answer. For all company transactions, including those made under your DBA name, your LLC’s EIN must be used.
Additionally, it is feasible to transfer your EIN to a different entity, for example, if you decide to convert your LLC into a corporation. Your EIN cannot be transferred to another person or organization, though. If you sell your company, the new owner will need to register for a new EIN.
The procedure for changing the name of your business may change depending on the laws in your state. In general, you must submit an amendment to your articles of incorporation or organization before updating your business licenses and permits. If your business structure changes, you could also need to update your IRS records, but you won’t require a new EIN.
Last but not least, renaming your company may appear difficult but is actually rather simple. Making sure the new name is available for use and not being used by another company is the most important step. On the website of the Secretary of State in your state, you can perform a name availability search or utilize a company name search tool.
In conclusion, even though your DBA and LLC may share a name, they are two distinct legal entities with distinct meanings. You can transfer your EIN to a new entity, and you don’t need a different EIN for your DBA. Your legal paperwork and business licenses must be updated if you change the name of your company. Depending on the laws in your state, the procedure may differ, but it is often simple.
Regarding the first query, it’s normally acceptable for a DBA and LLC to share the same name, but it’s important to double-check the rules in your state to make sure that the name you’ve selected is permissible.
In response to the second query, the particular steps to rename a business can differ by state and kind of entity. Generally speaking, it entails submitting documentation to the state authority that regulates commercial entities, like the Secretary of State’s office. This can entail submitting an update to the articles of incorporation or a certificate of name change, paying the necessary costs, and amending any necessary company licenses, permits, or registrations. Additionally, it’s critical to alter all marketing materials, websites, and other company papers to reflect the new name and to notify clients, suppliers, and other stakeholders.
If your name is generating confusion or conflict with another company or individual, or if it no longer accurately expresses your identity on a personal or professional level, you may want to consider changing it. If you wish to rebrand your company or are going through a significant life transition, like getting married or getting divorced, you might also need to alter your name.