Should You Name Your LLC After Yourself?

One of the most important decisions you’ll have to make when starting a new company is picking a name. You might be considering renaming your limited liability corporation (LLC) if you’re thinking about doing so. It depends, is the succinct response.

Naming your LLC after yourself can be a wise choice if you want to establish a personal brand and plan on serving as the company’s face. If you’re a consultant, independent contractor, or solopreneur, this is particularly true. It can be easier for potential customers to find you online and establish confidence if your name appears in the business name.

However, naming the company after oneself might not be the greatest move if you intend to hire staff or sell it at some point. It could not be as tempting to prospective buyers or investors and can make it more difficult to distinguish between your personal and business lives.

Technically, creating an LLC is not necessary to offer goods or services on your own website. There are, however, a number of reasons why doing so is a smart idea. First, an LLC offers liability protection, which protects your personal property (such your house or car) from business obligations or legal claims. Second, creating an LLC may facilitate future financing or partnering opportunities. Finally, establishing an LLC might help you project credibility and professionalism to potential clients. Do I have a business account with my name on it? If you’ve created an LLC, the name of the LLC, not your own, should appear on your company’s bank account. This is significant for both tax and liability reasons. When opening the account, you could yet be asked for personal data (such your Social Security number).

Although it is technically possible, it is not typically advised to deposit an LLC check into your personal account. This could be construed as commingling funds and make it more difficult to keep track of firm finances, endangering your limited liability protection. It’s advisable to open a unique business bank account and transfer all revenue and expenditures there.

The term “doing business as” (abbreviated DBA) refers to a registration that enables you to conduct business under a name other than your legal one. When a lone proprietor or partnership wants to utilize a business name that differs from their given name, they frequently adopt this strategy. A DBA doesn’t provide any liability protection, therefore you remain personally liable for any debts or legal actions incurred by the firm.

The legal entity known as an LLC, on the other hand, serves as a barrier between your personal and corporate assets and offers liability protection. It takes more paperwork and money to create and maintain because it is a more formal and structured business entity.

In conclusion, if you intend to be the face of the business and create a personal brand, naming your LLC after yourself may be a wise decision. It could be wiser to use a more generic company name if you intend to hire staff or sell the company in the future. In addition, creating an LLC can assist convey professionalism and credibility in the eyes of potential clients and partners while also offering significant liability protection.