January 6, 2021
One decision that can seem somewhat daunting when starting your business is choosing the right name for your business. Something to keep in mind is that your business name must comply with a slew of state laws regulating the naming of corporations and LLCs. Polymath Legal PC is pleased to take you through some of the basic naming rules.
Naming Regulations
Using California as an example, let’s briefly explore some naming regulations that can affect how you name your business. In California a business entity name can only include letters from the English alphabet as well as numbers classified as Arabic numerals. The business name must also include a business entity identifier, which means that your entity name must include words like Inc., LLC, Co., Corporation, PC, Limited Partnership … etc. in order to identify your company’s limited liability status. Business entity names cannot be the same or be deceptively similar to another registered business entity name. Business entity names should also not be deceptive to the public, such as names that suggest or imply governmental affiliation where there is none. There are also some words that are not allowed by state governments to be a part of a business entity name, so be sure to steer clear of these words.[1]
Lastly, remember that every state has different rules and regulations for naming a company, so it is important to have a lawyer go over these rule with you to ensure your business is in compliance with all entity naming regulations.
Rejection of Formation
It is important to get the name of your business right because if you do not comply with naming rules, the state where you are attempting to incorporate may turn down your business formation or qualification documents.[2] Forming a corporation or LLC with Polymath Legal PC means that we will ensure this does not happen to you. Consider contacting one of our knowledgeable lawyers at (833) 931-6418.
[1] Secretary of State Business Programs Division, Business Entity Name Regulations & Additional Statutory Requirements and Restrictions, (Jan. 2014) https://bpd.cdn.sos.ca.gov/be/forms/name-guidelines-restrictions.pdf.
[2] Wolters Kluwer, All-states smart chart: Entity naming requirements for corporations and LLCs, (Aug. 2020) https://www.wolterskluwer.com/en/expert-insights/entity-naming-requirements-for-corporations-llcs.