How to Name an LLC: 4 Essential Legal Checks

Starting a limited liability company (LLC) is an exciting venture, but before you dive in, it’s crucial to choose the right name for your business. The name you select will not only represent your brand but also needs to comply with legal requirements and restrictions set by the state.

In this comprehensive guide, we will walk you through the four essential checks to perform, covering every element of the LLC naming rules, including state requirements and “distinguishability” so you can make an informed decision about your company name.

Table of Contents

• Check State Requirements
• Check State Restrictions
• Check Existing Business Names
• Check "Distinguishability"
• Additional Tips to Consider
• Conclusion

1. Check State Requirements

When naming an LLC, it’s crucial to adhere to your state’s unique naming designator requirements. These requirements focus on the inclusion and permissible abbreviations that must be part of the LLC’s name. For instance, an abbreviation variation of the LLC, “Ltd. Co.,” is permitted in Nebraska but not in Illinois.

To assist you in navigating these varied requirements, here is a detailed table outlining the specific designator requirements for LLC names in each state:

LLC Naming Requirements by State (Domestic)

2. Check State Restrictions

In addition to requirements, each state also imposes restrictions on LLC names. It’s crucial to familiarize yourself with these restrictions to avoid potential legal issues.

Here are some general restrictions to be aware of:

• Your LLC name must not imply that it is a corporation or any other type of business entity. Avoid using words like “Corporation,” “Incorporated,” or their abbreviations “Corp.” or “Inc.” anywhere in the name.
• Your LLC name must not imply any federal or governmental affiliations. This means that terms like “government” may not be allowed, and names such as “Texas Real Estate Commission” may also be frowned upon.
• Your LLC name must not contain any vulgar or discriminative terms or phrases.
• Certain terms, such as “bank,” “insurance,” and “trust” may be restricted or require approval from specific state agencies. Restricted words may differ by state.

Below is a table of LLC naming restrictions by state:

LLC Naming Restrictions by State (Domestic)

3. Check Existing Business Names

Now that you’ve learned your state’s requirements and restrictions, it’s time to check if your LLC name is unique and not already in use by another business by performing an LLC name search.

Every state in the U.S. requires an LLC to be registered with a unique name. Take the time to research existing LLC names by visiting your state’s name availability check or business search website. A list of the websites by state is right below for your convenience.

LLC Name Availability Check by State

In addition to avoiding name repetition, make sure your chosen name doesn’t closely resemble existing trademarks, especially in the same industry.

For example, if you decide to name your LLC “Starbook Coffee,” it might infringe on the trademark of the well-known brand. Even though the names are not identical, the similarity in sound, appearance, and the industry could lead to confusion and potentially be considered an infringement.

Check with the US Patent and Trademark Office or use state websites to help avoid such issues.

4. Check “Distinguishability”

Now that you’ve checked the availability of your LLC name, you should be good to go, right?

Not so fast. To ensure the state will approve your LLC name, it must be distinguishable from existing business names. This means not only does the name have to be unique, it should also not be too similar to another business name, potentially causing customers confusion.

Below are some examples of LLC names that may be deemed NOT distinguishable:

• Corporate endings: Sofa So Good LLC vs. Sofa So Good Inc.
• Articles of speech: Deja Brew LLC vs. The Deja Brew LLC
• Conjunctions (e.g. “and,” “or,” and the ampersand symbol (&)): Fish & Chips LLC vs. Fish and Chips LLC
• Contractions: We’re Nuts LLC vs. We Are Nuts LLC
• Prepositions: Over the Moon LLC vs. Above the Moon LLC
• Punctuation and special characters (e.g. hyphens, slashes, periods, commas): Eats-Shoots-Leaves LLC vs. Eats, Shoots & Leaves LLC
• Singular/plural: The Lonely Sock LLC vs. The Lonely Socks LLC
• Possessive forms: Captain’s Treasure LLC vs. Captains Treasure LLC
• Verbs in different tenses: Bake LLC vs. Baked LLC
• Numbers in different forms (e.g. three vs. 3): Eight Lives LLC” vs. 8 Lives LLC

Again, each state may consider what’s “distinguishable” differently, so the best solution is to avoid any name that might raise questions about similarities or resemble any existing businesses too closely.

Additional Tips to Consider

In addition to the four checks above, here are some tips to consider when naming your LLC:

• Make the name easy to spell and pronounce. You want potential customers to find you easily.
• Keep the name short and memorable. A shorter name is more likely to stick in people’s minds and be shared with others.
• Ensure the name conveys a positive message. You want people to associate your business with something good.
• Check if the domain of the name is available. Matching your LLC name with the domain name can enhance brand consistency and improve online visibility. The same applies to social media accounts.
• Consider future growth and expansion plans. A location-specific name (e.g. California Chairs) might limit your scope.
• Avoid generic or common names that may get lost in a sea of unrelated content. For example, a name like “American Shorthair LLC” may leave your potential customers with search results about cats when trying to search for your company online.

Conclusion

Choosing the right name for your LLC is a crucial step in establishing your brand and complying with legal requirements. By completing these four checks, you can select a name that reflects your company and sets you up for success. Remember to conduct thorough research and consult legal professionals if needed to ensure your chosen name aligns with all necessary regulations.

With these guidelines in mind, you can now confidently name your LLC and embark on your entrepreneurial journey.