Want to Change Your Business Name? – Here is What You Need to Know

How to Change Your Business Name

Sometimes a business name doesn’t work out for you: You thought the clever name you choose would represent your company well, but customers don’t get the connection. You may have used your own name in the company name, but you now want to revamp it to make it more reflective of the brand as a whole. If you are not sure of how to change your business name, here are some steps you must follow:

1. Research the new name

You can start by checking the Patent and Trademark Office. You should check to see if your new name has already been registered by anyone else.

If the domain name is not available, check whether any accredited registrars can register it. In ideal situations, if you’re a for-profit company, you’d like a .com address, and if you’re not for profit, you’d prefer a .org address.

Make sure your new name isn’t already registered with your state’s secretary of state by visiting their website.

2. Notify your secretary of state

There is a form you can get from your state’s office if you want to change your business name. Different states have different names for the form. Find contact information for your state’s office by visiting USA.gov. If you want to change your name, you will likely have to pay a fee.

3. Change licenses and permits

Most businesses are required to obtain business licenses and permits from different levels of government. The offices associated with those permits can provide you with information on how to change the name on those forms. You will likely be charged fees for this service.

4. Notify the IRS

You must comply with different IRS requirements depending on your type of business. It is necessary to notify the IRS for federal tax purposes. How you do that depends on your business legal type:

• Let the IRS know that you have changed your name if you are a sole proprietor. Use the mailing address you used for your tax return (your 1040).
• For corporations (including S corporations), you can change your name by filing your tax return (on Form 1120), or by writing to the IRS at the address where you mailed your tax return. The notice must be signed by a corporate officer.
• If you have a partnership, you should notify the IRS when you file your partnership information return on Form 1065, or you can send a letter to the IRS with a partner’s signature.
• If you operate your business as a limited liability company (LLC), follow the sole proprietorship process above if you have one member and the partnership process above if you have more than one member.

You can read more about your specific requirements on the IRS website. Changing your name on your next tax return can be as simple as noting the change.

5. Update your business documents

You need to update your branding to reflect the new name and logo. Everything from your business forms to your signage and website needs to reflect the name and logo change. You will need to contact your website administrator to have your site redirected to your new domain.

Why Would I Change My Business Name?

There are many reasons to change your company name. For example, if your company enters a new market or switches up products, you may need to update your name to align with your company’s new focus.

Many companies find it necessary to change their names in order to boost their success if they suffer from brand confusion or when people confuse their company with another with a similar name, acronym, or logo. For example, if you run a dry cleaning business and constantly get calls for home cleaning, you can stop having to redirect countless phone calls throughout the day.

If you need help coming up with a new business name that will set you apart, try our free guide on how to choose a business name. This is the perfect way to rebrand your company. You just need to choose a name that will resonate with your customers to make this a worthwhile decision.

How Much Does it Cost to Change Your Business Name?

It varies from state to state how much it costs to change your business name. In states with a high level of competition, costs are likely to be higher with complex types of business structures.

Consider the costs and time involved in changing your business name before you begin the process. The legal process and cost of changing the name of a business are just one part of the process. Another task is to change in all the places your business name is displayed to the public as well as to the internal staff and on all legal documents.

The cost of changing a business name includes:

• Changing your name with the IRS, your state or states, and local entities
• Making trademark, copyright, and patent changes
• Changes to legal documents and contracts
• All advertising, websites, and promotional materials must be changed
• Change all internal documents

When Will I Know My Business Name Has Been Changed?

Checking you should receive an official confirmation from all parties concerned regarding the name change of your business. Whether you filed with the IRS, your local city or state government, or your local and state governments, you should save all substantiated proof that you did.

Then, you will have to follow up to ensure that your requests were received and fulfilled if you don’t receive confirmation paperwork.

How Long Does It Take to Change a Business Name?

For the IRS to register a change of business name, the process usually takes about two months. It is important to change your name at the right time because even if you were able to do so at the county or state level, your federal taxes could be more complicated if your names don’t match. You should give yourself at least three months’ lead time before you have to file your federal taxes.

Is There a Professional on Hand to Help?

A qualified expert can provide you with peace of mind – also known as a priceless feeling in business. You do not need to worry about missing a field or not checking the right box.
An owner may suffer catastrophic results if certain information is omitted.

Not only is it a hassle when it comes to paperwork, but it can cost a lot of money in fines, damaged reputations, or lost productivity.

If you require Services from a Business lawyer. Look no more. Business Attorneys at wise business plans determine which parties you need to file with and how to answer each question, regardless of whether your business is changing its name or number of shareholders.

Changing your business name requires a commitment on your part. Despite knowing their industries like the back of their hands, business owners often lack the same instincts when it comes to taxes, registrations, and legal documents. To avoid major pitfalls, it is helpful to do your homework (or consult an expert).