Picking Up the Right Name for the corporation or LLC in California

In the corporate world, it is an obvious fact that the success of a venture initially depends on the nature of the business. But what many people fail to realize is that the reception of the public towards the corporation in California – or any other type of business, for this matter – is greatly affected by its name.

Indeed, a company name serves as the most obvious representation of the business entity. It is what the business will be called. In an instant, it should totally explain to the customers what the business is all about. The name of the company is the first thing that people should remember about the business.

Therefore, it is a must that creativity should apply when thinking of a name for a corporation or LLC in California. But then, it is not this factor alone that creates a good name. There are certain things to remember when picking up the right name for a business entity in the said state; and people should decide based on those standards if they want their proposed company to be chartered easily and smoothly by the Office of the Secretary of State.

As said, the name of the company should be relevant to the nature of the business. Although it is mentioned that creativity is required as it is a great factor to start a successful marketing for the enterprise, it still has to answer in an instant, ‘what is the business all about?’

Uniqueness is a basic characteristic that the name should possess. It has to be understood that the State Secretary rejects a request to register a company which proposed name is similar to another chartered one. There is no way that a single name will be shared by two enterprises of the same nature in California. This is in order to avoid confusion among the public and the approving officials.

When deciding on a business name, the type of business should be implied. For example, it should not deceive the people into thinking that the enterprise is a corporation in California when it is actually an LLC. The terminologies used should be taken into consideration. A registering California LLC should have the worlds ‘Limited Liability Company,’ ‘Ltd. Liability Co.’, ‘LLC’, or ‘L.L.C.’ on its proposed name, It should not contain the words ‘bank’, ‘trust’, ‘trustee’, ‘incorporated’, etc. as these should be used for corporations only.

After deciding up for a name, the stockholders or members should make sure that everyone agrees to it. This is to avoid conflicts, nuisances and hassles in case the company owners suddenly decided to change the name. It entails a difficult and confusing process, so it is better to make sure of the name before proceeding with the company registration.

The name should be checked and reserved with the Office of the Secretary of State before it is submitted for registration. This is the first step to register a company, which all entrepreneurs must abide by.

Coming up with a name for the California corporation or LLC is not really a difficult process. But for more assurance, it is best to consult corporate lawyers.