Even though the original name you chose for your company may have been perfect at the time, things do change, businesses evolve and sometimes the name has to change along with it. Also, some companies, for legal reasons, may need to pick a different name. When you do decide on a name change for your business, the process involved can be a bit confusing, so we thought we’d break down the steps you need to take to change your company’s name.
Sole proprietorships and partnerships
With either of these, a name change can be somewhat easier than say with a corporation. You haven’t registered with the state and so there is some flexibility as far as the name under which you operate. Really, you can go by any name you choose, you simply have to file for a DBA (doing business as/). To file for a DBA, you must first cancel your existing one. You can usually take care of this at your local governing authority office. You also need to check with your bank to see if they are going to require you to have an account set up in the name of the DBA. The same goes for any required business permits and/or licenses. You want to let the IRS know that you are now using a DBA—they may require a new EIN (employer identification number/).
LLCs and corporations
For both of these, there are one of two things you can do in terms of a name change: you can abandon the current name altogether or you may also opt to create a brand new one for a particular marketing/product line purpose.
To change the name of your existing company, you will need to file the “Articles of Amendment” with the state—this is effectively your name change request. Once approved you can operate under your new business name. Also, be sure and address the following:
- Check with your bank to see if they require brand new accounts given the new name.
- See if your licenses and permits need to be updated with the city to reflect the name change.
- Also, see if you’re going to need a new EIN.
- And as always, get in touch with the IRS regarding your company’s new name. They also may have directions right on the IRS.gov website for businesses that are in the process of a name change.
We would love to see your business grow. At First Union, we provide 9 different financial products to ensure that we can assist businesses at any stage of their journey. To get started, click here or call 863-825-5626 to speak with one of our lending specialists, who will help you find the right loan to make your small business dream come true.