![]() Generally, if you do not use the correct designator for your company, or if you leave out a designator completely, incorporation will not be possible.Īnother question many people have is if they can use the abbreviation “Inc.” even if they haven't completed the incorporation process. This can be important in letting people know how liability is applied if there is a disagreement between a company and a customer or client. As mentioned, the purpose of these words is to let people know the legal status of your company. One of the most common questions related to business name conventions is why words and abbreviations like incorporated or Inc. Both of these entities offer limited liability protections. To avoid this personal liability, many business owners choose to form a corporation or LLC. While sole proprietorships and general partnerships are beneficial in some regards, their primary drawback is that owners can lose their personal assets if the business gets sued. General partnerships, which are operated by two people or more, may also use a fictitious name. For example, if your name is John Stevenson and you want to run your business using the name “Stevenson's Building Company,” you need to complete a DBA registration or submit a fictitious name statement.īusinesses that operate under a DBA name are almost always sole proprietorships, which are owned and operated by a single person. Basically, with a DBA name, you are transacting business with a name that is not your legal name. In some cases, you may want to run your business under a fictitious name or doing business as (DBA) name. Sole Proprietorships and Fictitious Names If your business is a limited liability company, the name of your business should include those exact words or the abbreviation LLC. The option that you choose depends on your preferences. Some of the designators you could add to your company name include:Īll of these are designators used to indicate the legal status of a company. For instance, when forming a corporation, your company name will need to include a designator that reveals its corporate status. Whichever structure you choose, you will need to comply with the naming conventions in your state. In the United States, there are several different business structures available, including corporations and limited liability companies (LLCs). Your corporation will need some designator to indicate its status, however. If you form a corporation, “Inc.” is just one of several designations you could add to your company's name. The important thing is to be consistent and stick with the name you register, particularly when it comes to legal documents.Do you have to put "Inc." after the company name? No, not necessarily. Use a comma or don’t, either way is fine. In short, the answer to the title question is that it’s up to you and your fellow LLC members. In the case of corporations using “Inc.”, for instance, the period is not legally required but is almost always used. What About Periods?įor an LLC, periods are not usually used at the end of LLC, but “L.L.C.” is sometimes used. You need to always use your LLC name exactly as written on your business registration documents. If your chosen business name has a comma, you need to always use the comma, particularly on legal documents. What’s important is that you’re consistent. Associated Press (AP) style suggests not to use the comma, but that does not need to be a consideration. Grammatically, opinions on the comma vary. For example, if your business is Smith’s Shoes LLC, calling it “Smith’s Shoes, LLC” separates the LLC from what customers will actually call your business. Many businesses use the comma because it offers separation between the business name and the LLC designation. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals. Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. ![]() Your business name is important, however, so choose wisely. The same applies to corporations with “Inc.” in their name when it comes to the comma. Check with your state for specific naming requirements. Naming requirements vary by state, but no state requires a comma in your LLC name. It’s up to the LLC owners, also known as members, whether to use a comma before LLC or not. States do not dictate the punctuation used in your LLC name. But you might be wondering about the appropriate punctuation - for instance, do you need a comma in your LLC name? State Requirements Most states require that your LLC name include either “limited liability company”, “LLC”, or “L.L.C”. If you’re starting a limited liability company (LLC), you’ve probably checked your state’s LLC naming regulations before settling on a name for your new business.
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