It may be both exhilarating and overwhelming to launch a new company. Choosing whether to use an existing LLC for the new firm is one of the choices you’ll have to make while forming one. This question’s response is complicated because it depends on a number of variables.
First, it’s critical to comprehend what an LLC is and how it functions. A company organization called an LLC (Limited Liability Company) combines aspects of a corporation and a partnership. It offers the owners, referred to as members, personal liability protection along with the pass-through tax benefits of a partnership.
If you currently have an LLC and wish to launch a new venture, you can do so by using the same LLC, but you must ensure that the new venture complies with the legal requirements of the original LLC. It is advisable to create a new LLC if the goal of the new firm differs significantly from that of the old LLC. For instance, you cannot utilize the same LLC to launch a restaurant business if your previous LLC was established to offer accounting services.
You may need to make certain adjustments to the current LLC if you choose to use it for a new enterprise. To begin with, you must modify the LLC’s name to reflect the new enterprise. You must submit an application to the State Corporation Commission in Virginia if you want to change the name of your corporation. This application must be submitted with a fee and include the new name of the LLC.
The trade name is a crucial factor to take into account when leveraging an old LLC for a new enterprise. The name a company uses to identify itself to the public is known as a trade name. For instance, “Amazon” is the trade name for the company “Amazon.com, Inc.” in legal terms. You must register a trade name with the State Corporation Commission if you intend to use one that differs from the legal name of your LLC.
It is significant to remember that no two companies may share the same name. Therefore, you should perform a comprehensive investigation to make sure your trade name is not already in use before registering it. You can either perform a database search on the Virginia State Corporation Commission’s website or hire a professional agency to do it for you.
And finally, you might be interested in learning how to determine whether a company is IRS-registered. Use the “Exempt Organizations Select Check” search engine provided by the IRS to see if a company is registered with them. You can use this tool to look for organizations that can accept charity contributions that are tax deductible.
In conclusion, it is conceivable to use an old LLC for a new firm, but it necessitates considerable thought and specific legal action. It is advisable to speak with a business attorney or accountant who can offer advice based on your unique circumstances if you are confused whether to use your previous LLC for a new firm or create a new LLC.
You can use “USA” in the name you choose for your business, but there are some limitations and rules you must abide by. It can be misleading when a company name contains the word “USA” because it could be taken to mean that the company is connected to the US government. State officials and the US Patent and Trademark Office will therefore scrutinize the usage of “USA” in a corporate name. Before utilizing “USA” or any other potentially sensitive words in the name of your organization, it is crucial to seek legal advice.