Choosing a name for your LLC is one of the most crucial decisions you will make when beginning a new firm. Your company’s name will be the first thing prospective customers see and how they will learn about you in the marketplace. As a result, it’s critical to pick a name that is distinctive, professional, and memorable. But does it really matter what your LLC is called? Yes, it is the answer.
First off, whether or not your LLC can be registered depends on its name. To be sure that the name you have in mind is available, you must perform a company name search before registering your LLC. You’ll have to pick a different name if the first one is already taken. Therefore, it’s crucial to pick a name that’s original and hasn’t already been taken.
Second, your LLC’s name might either help or hurt your marketing initiatives. A catchy and memorable name will help potential customers remember your company and recommend it to others. On the other hand, it may be more difficult for people to discover you if your name is unclear or badly chosen.
It’s crucial to adhere to the right structure when writing your legal name for a DBA (doing business as). Your selected DBA name should be stated after the legal name of your LLC. For instance, your legal name for the DBA would be “Smith Enterprises LLC, doing business as Smith’s Bakery” if your firm is called Smith Enterprises LLC and you want to operate as “Smith’s Bakery”.
It’s crucial to understand that a DBA is not a distinct legal entity when it comes to taxes. This means that any revenue generated by a DBA is treated as personal revenue for tax purposes and must be recorded on the owner’s individual tax return. As a result, it’s crucial to set aside some of your income to pay your taxes.
Multiple DBAs are permitted for an LLC, but each one needs to be registered separately. For each DBA, you will consequently need to pay additional registration fees. Additionally, it is crucial to keep each DBA distinct and orderly because each will have unique tax liabilities and financial records.
In conclusion, choosing a name for your LLC is a serious choice that must be carefully considered. It may affect your capacity to incorporate your company, promote your brand, and draw clients. It’s crucial to think about a name’s availability, recallability, and originality while selecting one. It’s also crucial to keep financial records tidy, set aside money for taxes, and adhere to proper naming practices when working with DBAs.