The Cost of Changing a Business Name in NC

A major choice that can have an impact on a company’s brand, reputation, and marketing tactics is changing the name of the company. The procedure for changing a company name in North Carolina entails a number of legal and administrative formalities that could cost money. The price of renaming a company in North Carolina varies depending on the nature of the company, the registration requirements, and the cost of the attorney.

For instance, changing your company name is fairly easy and affordable if you operate as a sole proprietorship or partnership. By submitting a “Doing Business As” (DBA) registration with the NC Secretary of State, you can change the name of your company. In North Carolina, a DBA registration costs $26 and is good for five years. However, changing your business name whether you operate as a corporation or an LLC may be more expensive.

Articles of Amendment must be filed with the NC Secretary of State in order to modify an LLC or corporation’s name in the state of North Carolina. In North Carolina, an Articles of Amendment must be filed for $50. Additionally, you might need to change the name of your company on tax returns, licenses, permits, contracts, and other legal papers, which could come with additional costs. Additionally, you might have to pay extra costs to transfer or update any registered trademarks or domain names connected to your previous company name.

Additionally, deciding between a sole proprietorship and an LLC depends on a number of variables, including liability protection, tax advantages, and management structure. With limited liability protection provided by an LLC, the owners’ private assets are shielded from the debts and legal actions of the corporation. The flexibility of an LLC’s management and tax alternatives, such as pass-through taxes, which prevents double taxation, are further benefits. However, establishing an LLC entails more formalities than establishing a sole proprietorship, which may result in higher fees.

In order to remove your name from an LLC in North Carolina, you must adhere to certain legal requirements. The procedure can entail selling your shares to a new owner or transferring your ownership to another member. To discover the best way to remove your name from an LLC and avoid any legal or tax repercussions, you might need to speak with a lawyer or accountant.

Finally, you might question if you can keep the same Employer Identification Number (EIN) if you alter the name of your company. If the business’s legal structure stays the same, such as switching from a sole proprietorship to an LLC, you can typically keep the same EIN. However, you might need to register for a new EIN if the ownership or organizational structure of your business changes.

In conclusion, changing a company name in North Carolina entails a number of legal and administrative procedures that could cost money. Depending on the sort of business, the legal fees, and the registration requirements, changing a business name might be expensive. Additionally, the decision between an LLC and a sole proprietorship is influenced by a number of variables, including liability protection, tax advantages, and management structure. To ensure compliance with the legal and tax requirements, you might need to speak with an attorney or accountant if you wish to take your name out of an LLC or maintain the same EIN after changing the name of your company.