Forming a business is a multi-step process. An entrepreneur should first determine what type of business structure (eg LLC, Corporation, Partnership) to have, followed up by the choice of state, and then consider: i) choose a business name; ii) name reservation; iii) DBAs; and iv) regulatory compliance.

Choosing a Name

There are both required elements and restricted elements for a business name under state laws.

Limited Liability Company typically must contain the words “Limited Liability Company” or either the abbreviation “L.L.C.” or “LLC.” The word “Limited” may be abbreviated as “Ltd.,” and the word “Company” may be abbreviated as “Co.”

Corporations typically must contain the words “Corporation”, “Incorporated”, or as abbreviations “Corp.”, “Inc.”.

The business name must be unique and distinguishable from the name of any other existing business name already registered with the state’s Secretary of State office.

Name Reservations

You can check a name’s preliminary availability by doing a business name search, typically via the state’s Secretary of State (SOS) website.

Inquiring about the availability of a name, however, does not reserve the name for your use; it has no binding effect on the SOS office; and it confers no rights to a name. Most states allow for a name reservation application to reserve a business name for a certain number of days.

DBA / Doing Business As / Fictitious Names

A company wishing to do business under any name other than its legal name must file, publish, and periodically renew its DBA or fictitious name registration. Though, often business owners who want to establish a DBA actually intends to launch a brand name. If protecting your business’s brand name is the goal, registering it as a trademark is the better approach.

How Does One Prepare and File the Business Formation Documents?

LLC articles of organization is fairly straightforward to prepare. Most SOS state websites have ready-to-fill forms which you can download and fill out on your own.

Corporation articles of incorporation is usually more complex. Based on the state of incorporation, you may have to consider how many classes of stock to authorize. It is recommended that you have an experienced lawyer help you prepare the articles of incorporation for your corporation. You should learn more about multiple classes of stock before finalizing the articles. Our attorneys would be happy to guide you through the formation process.

What Licenses and Permits Does the State Require to Operate a Business?

While forming a business might not require a business license, operating the business, based on the type of business may. Our team of experienced attorneys can help you navigate your regulatory compliance needs. Contact Us here for a 15-minute complimentary consultation.