There are many reasons a business owner may want to change their business name. A name change may be a necessary step to pivot into a new market. Name changes could also alter your approach to branding and marketing. Regardless of the reason, a business name change requires documentation to ensure your business doesn’t accidentally incur any legal ramifications. Depending on the type of business structure you have, the process may vary slightly. Check with California’s state and local business websites to verify the steps you need to take.
What is the Difference Between a Legal Business Name and a DBA?
On creation, you filed your business formation documents with the state and federal governments using a specific name. The name that you submitted to government institutions is classified as your legal business name. It is the official name of your business on file with the government. If you’ve decided to abbreviate your name for marketing or branding, you would have had to file a fictitious business name or DBA. A DBA is the name your business operates under with the public. The government does not use this name to refer to your business. However, it must be notified if you use a DBA instead of your business’s legal name.
Filing a Change to Business Name with an Amendment
If you started a corporation or LLC, you filed Articles of Incorporation or a similar document. Because LLCs and corporations are often co-owned by multiple stakeholders, they must vote upon the decision to change the business name. Sole proprietors and partners generally do not need to vote. Once the vote is successful, you may file an Amendment to the Articles with the state, updating the name. After approval by the government, you can file a Statement of Information with the California Secretary of State’s office.
Updating Your Taxes
One of the most important steps to alter your business name is to update the information on file with all the relevant tax agencies, including the IRS. If you forget or neglect this step, you could experience tax audits, fines, or other penalties. Filing a name change with the IRS depends on the business structure. Sole proprietors need only write a formal letter to the IRS about the name change, while corporations and LLCs will need to properly file certain tax return documents. Find out what your business needs here.
Change Your Business Name on Your Licenses and Permits
If your local agencies require permits or licenses to do business, you will need to file name change documents with them to receive updated certificates. Additionally, businesses that file payroll will need to update the Employment Development Office in California and any other companies or vendors who require accurate records like their bank or insurance companies.
Helping the Inland Empire File Business Formation Documents
Changing your business’s name requires quite a bit of leg work and documentation. Although it may seem daunting, it isn’t impossible with the right help on your side. The legal document assistants of ProSe Legal can help you organize, complete, and file all your business name change paperwork for state and local agencies, so you can get back to running your business.
If you need assistance filing documents to create, change, or close your business, today or call (909) 224-4361 to schedule your appointment.
