If you're setting up a limited liability company, coming up with the name is something that seems to trip a lot of people up.
I can't tell you how many times I've been on the phone with someone and I say, "hey I need a name or two for your limited liability company." And it's just silence.
Naming your LLC names are not that important, but there are a few things to consider naming it.
When it comes to setting up your LLC and it's not a business per se, that is associated with you, do not use your name. That is the number one mistake that I see people make.
Watch this video as I break down what to consider when naming your limited liability company.
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ABOUT CLINT COONS
Clint Coons, Esq. is one of the founding partners of Anderson Law Group, Clint has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.
The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
- All right, guys.
Hey, in this video, we're gonna talk about how to.
Name your limited liability company.
All right, let's get started.
(upbeat music) So, if you're setting up a limited liability company, coming up with the name is something that seems to trip a lot of people up.
I can't tell you how many times I've been on the phone with someone and I say, hey, now I need a name or two for your limited liability company.
And it's just silence.
I don't know what to call it.
I gotta talk to my spouse about this.
I have to get back to you.
Hey, names are not that important, but there's some things you should consider when naming it, but for sure, don't get hung up on it, because things can happen.
I mean, I had this one client years ago, was setting up 17 limited liability companies over this person in Oregon, there were two physicians, and they couldn't agree on the names.
Let's say they went months without setting up the LLCs because of names.
And then this, one of the.
Wife, is involved in a car accident.
Wasn't at fault.
She? Actually got hit from behind, and her car was plowed into the other three cars in front of her that had already collided, but she had the nicest car.
She had the S-Class Mercedes.
So everyone sued, her.
At that point in time, they were scrambling trying to get their properties.
And I told him, hey.
It's too late.
Everything could have been protected, but you couldn't decide on some names.
So, when it comes to setting up your LLC, if you're gonna hold, if it's not a business cave per se, that associated with you, do not use your name.
That is the number one mistake that I see people make.
They put their own name down on their LLC.
Clint Coons, Limited, Liability, company.
Now, why the hell would I wanna do that? I mean, unless I wanna brand myself and this company, and myself being associated with it,? If it's gonna hold assets, your name should not be in there at all., I mean.
Part of my strategy is about using anonymity.
You just went and blew it for yourself by adding your name to the LLC.
The other thing to consider.
Too, is that if you come up with a name, for example, if you decided, hey, I wanna, we're gonna call this Evergreen Investing.
All right, people get attached to names.
They find one name, and then they wanna go out there, and continue to use that same name.
So you're gonna create multiple LLCs, Evergreen Investing.
What is called EI LLC.
They come on the Evergreen, Investing One, LLC, Evergreen, Investing, Two, LLC, and so forth, down the line.
And they're, creating multiple LLCs all with the same name.
Think of it.
If you're trying to build anonymity.
Even, though your name's not associated with these entities.
What is associated with all of these entities, that one Wyoming holding company that we have down here, right, here, there's, Wyoming, LLC., So, you've just basically told someone, hey.
All of these entities are really owned by the same guy.
There's, not a lot of research that has to go into this., Because I'm gonna make that assumption.
Whoever's creating them this way.
That's still the same.
So you wanna, minimize that to the, do not use this type of naming.
Not only is I think giving away too much information to tell someone, hey, E One or EI One, Two, Three, Four, Five, they're, all associated together.
Who's, it confusing to? Well, number one.
It's confusing to your bookkeeper.
It's, confusing to your attorney.
Had discussions with people, before.
And I, think I'm talking about Evergreen One.
We have to be talking about Evergreen Four, because he didn't say: Evergreen Four, he just said, Evergreen, the fourth one.
Mike, what, I get all confused about which entity we're supposed to be dealing with.
It makes it harder to communicate with other people.
Not only is it other people, you'll get it screwed up.
And I'm telling you this from firsthand experience, I've been there.
I did this at one point in time, and I will never do it again because of that, because of the confusion associated with that.
In naming your LLC, try to stay away from this type of stuff.
That brings us then to setting it up for the real estate.
Then what do we actually call it if we're not going to be using this type of structure? Like this? Well, what I will tell is you is you can pick any name, you want, but first you have to figure out what you're gonna be using.
If you're gonna be using a land trust associated with it, then watch my video on naming your land trust.
That's key here., You wanna make sure those sync up.
What I'll typically tell people is name the LLC after the property address.
If you already have the property, that makes it extremely easy to do.
You would set up your LLC if the property was located on 732 Broadway, then I would set this LLC up with 732 Broadway LLC.
What I would use.
I know which property is held? There.
Another thing that sometimes I'll put into my LLCs as well, is the state, for example, if it was, I own property in multiple different states.
So when I'm setting them up.
So, when I'm just looking down the line of my entities, I'll, put a designation on here, for example, 732, Broadway, or 732 Broadway, say NC, LLC.
Why do I put NC? Because that tells me.
That is my North Carolina LLCs.
So every time I see, NC, I have the address, and that NC designation tell me which state it's in.
If you invest in multiple states, and you're, setting up multiple limited liability companies.
This is an easy way for you to remember which property is located in which state.
Because, as you buy more, you tend to forget.
I do, I can't keep track of them.
So I use the NC designation on there, or whatever state that you're investing in as a rule of thumb.
The problem that comes up is for individuals who are setting up LLCs in advance.
This is a common thing that you should do when you're investing in real estate.
You know that you're gonna be buying property, and you know the state that you wanna be investing in, maybe set up one or two LLCs and have them on the shelf.
So you don't own the property yet, but you're gonna be investing in a certain state.
So you can't use the property address.
'cause you haven't, acquired it yet.
The other thing is.
Is you? Wouldn't wanna set up an LLC right in advance of making an offer on a particular property., For example, let's say I was gonna, make an offer on 732 Broadway., So I hop online.
Some states such as Wyoming.
You, can create the entity just like that.
So I could have 732 Broadway in five minutes, ready to go.
So, then I make the offer for 732 Broadway.
I've seen this come up before that it throws off realtors and sellers or property because they start wondering.
Why do you have an LLC set up with the exact same name of my property? And? They think something fishy is going on.
So, that you've gotta kind of be leery of coming up with the name before you actually have this property under contract.
Don't make the offer in the name of that LLC, 'cause I've seen it cause problems for people.
It brings me to this point, when you're gonna, if you don't own the property yet, think about it in terms of where you're gonna be investing.
If I knew, I was going to be investing in say, Memphis, Tennessee, and I'm gonna be looking in that area, maybe in a certain county.
Maybe you do something with the combinations of that county in the city.
So again, it's a mnemonic that helps to remember where it's located, but it doesn't have the exact address.
Yet in there., The other thing, you're always free to do is this, come up with any generic name that you want for your limited liability, company.
And, then you can always change it later.
So, after you get the property under contract.
So let's say I started off with this LLC here.
And I just set it up as R and R LLC.
They just had to get something set: up, made short and simple.
I've now, I have this property, 1375, Olive, under contract.
They know that I'm gonna be closing on that property.
If it's a residential property, and you're using debt, you're closing in your own name, anyways.
You got plenty of time to do.
It's not like you, have to have the LLC set up to close, unless you're using a portfolio lender.
But in that case.
What I would do is at this point in time, I would amend this filing with the secretary of state to change the name to 1375, Olive LLC.
So if you're doing that.
And, you haven't set up your EIN.
So this is one of the things also, I like to throw out.
When you set up an LLC.
You have to get employer identification, number, 'cause.
You need that EIN to open up the bank.
Now, it's nice to have all that done ahead of time.
Get your LLC set up, get that bank account set up.
So, everything's, ready to roll when you transfer the property in.
This is one of those scenarios where maybe you hold off on applying for the EIN.
The reason I say this is that.
If you applied for the EIN under R and R LLC, but then you change the name.
Well, then you're gonna have to update the IRS with that name: change.
And, if you don't wanna, have to update the IRS, and go through that process, then hold off on obtaining the EIN.
That means file.
Get it set up.
You know you're, not gonna close in that LLC, 'cause.
It's a single family property that you're getting a mortgage, on.
So having that bank account, that EIN isn't that critical at this stage.
Once you've got that property under contract.
Then, when you go back, change the name on your LLC.
After, the name is changed with the secretary of state, then file for the EIN, for your entity.
The EIN, as initially issued, will match the current name of the entity.
I mean, there's no hard and fast rules when it comes to choosing names for your limited liability.
But I tend to like to gravitate towards things that give me some indication of where that property is located based upon the LLC name.
If you can use the address in it, even better., What you wanna stay away from is tying your name to that limited liability company, that's owning your real estate.
Only time you wanna use, that is, if you're gonna go out there and try to brand yourself.
All right, guys.
That was my video on how to name your real estate, limited liability, company., Take, care., (upbeat, music).
Keep the name short, simple, and to the point with 1 to 3 words at the most. Stick to basic names such as the rental property street address, the neighborhood, or the part of town in which the home is located.What is a good name for an LLC? ›
- Sparkling Solutions.
- Proven Progress.
- Vision Ventures.
The short answer to the name question is: Your LLC name does not have to be your business name or match your website name for marketing purposes. But for the legal and financial aspects of doing business you should use the exact LLC name registered with your state.What are 3 characteristics of a limited liability company also known as a LLC )? ›
Characteristics of limited liability company include separate legal existence, limited liability, flexibility in taxation, and simplicity in operation.What are good real estate names? ›
|Above All Realty||All Around the Neighborhood Realty|
|Pavillion Abodes||Peach Realty|
|Peak Nova Realty Advisors||Peerless Diamond Realty Group|
|Perfect Group||Perfect Properties|
|Pinnacle Homes||Platinum Property Construction|
- Spa Paragon.
- GameDay Catering.
- Exploration Kids.
- Yoga Professor.
- Darwin Travel.
- Party Plex.
- Pizza Factor.
- Acorn Crafts.
So, if you want to establish your company, it is essential to keep yourself personally connected to your brand. When you name an LLC after yourself, it serves as the best way to merge your identity with your business while getting all the legal securities offered by an LLC.What is an example of an LLC business name? ›
Using the abbreviation “LLC” is the most common. For example, Joe wants to start a company with the name “Joe's Landscaping Services”. Since he is forming an LLC, he must add one of the “LLC” designators and use the name “Joe's Landscaping Services, LLC”.What is a catchy name? ›
If you describe a tune, name, or advertisement as catchy, you mean that it is attractive and easy to remember.What words to avoid when naming an LLC? ›
Your LLC's name can't contain the words like “bank,” “trust,” “trustee,” “insurer,” “insurance company” or any other words suggesting you're in the insurance business (unless you are). You can't include things like “incorporated,” “inc.” or “corporation,” because your LLC is not a corporation.
Using your own name maximizes the value of your personal credibility as a respected and reputable supplier in your market. Builds trust and credibility: Customers like to know there are real people behind a business who will be accountable for their products and services.Can I abbreviate my LLC name? ›
LLC Name Requirements and Restrictions
This can be the full name of a limited liability company or a form of the abbreviation. Abbreviations that are allowed include "LLC," "L.L.C.," "L.C.," "LC," "Ltd," and "Co." for company. Check with your state to confirm the version you choose is allowed.
LLC: Core Differences. In basic terms, the owners of an LLP are considered partners in an organization, while the owners of an LLC are members. As a result, there are key differences between how the limited liability protection is recognized, how an LLC and LLP are managed and how each structure is taxed.What is the difference between LLC and limited liability company? ›
LLCs and Ltds are governed under state law, but the primary difference is Ltds pay taxes while LLCs do not. The abbreviation “Ltd” means limited and is most commonly seen within the European Union and affords owners the same protections as an LLC.What is the disadvantage of an LLC? ›
Disadvantages of creating an LLC
Cost: An LLC usually costs more to form and maintain than a sole proprietorship or general partnership. States charge an initial formation fee. Many states also impose ongoing fees, such as annual report and/or franchise tax fees. Check with your Secretary of State's office.
- Write out your story. ...
- Take a personal inventory. ...
- Look at other business names in your industry. ...
- Look at other industry business names. ...
- Do an emotional brainstorm. ...
- Check the thesaurus. ...
- Mull over mythology, movies & legends. ...
- Use a business name generator.
- Your name is great, but maybe not for real estate. ...
- Shorter URLs are better than longer ones. ...
- Make it easy to spell. ...
- Focus on local. ...
- Dot-com extensions are better. ...
- Avoid hyphenated domain names. ...
- Be descriptive. ...
- Your name is great, but maybe not for real estate.
- bricks and mortar. noun. a house, flat, or other building considered as property.
- devise. noun. real property such as buildings or land left to someone in a will.
- estate. noun. ...
- estate agent. noun. ...
- landed. adjective. ...
- property. noun. ...
- property. noun. ...
- real estate. noun.
- Follow your state's naming guidelines. ...
- Don't pick a name that's too similar to a competitor's name. ...
- Choose a name that people can spell and pronounce. ...
- Make your name web-friendly. ...
- Be memorable but not too unique. ...
- Pick a name that's consistent with your brand. ...
- Don't limit yourself.
- Perficient (proficient, perfect, efficient)
Most states require an LLC designation be included in the name of a company that's registered as an LLC. The designations vary from state to state, but generally include phrases or abbreviations such as "Limited Liability Company," "Limited Liability Co." "LLC," and "Limited."Does LLC go before or after a company name? ›
The comma before inc. or LLC
It's one thing to put LLC or Inc., in your name, but is it proper to place a comma before them? That's up to you. The states do not require or mandate the use of a comma between the title of your business and the corporation or LLC designation when naming your business.
LLC stands for Limited Liability Company and can be used as a legal form of incorporation and tax designation. Businesses use this designation because it's a way to distinguish themselves from other companies with similar names or product offerings.What are popular examples of LLC? ›
- Hertz Rent-a-Car.
Many well-known companies are structured as LLCs. For example, Anheuser-Busch and Westinghouse are organized as limited liability companies.Can you have multiple businesses under one LLC? ›
The answer is yes--it is possible and permissible to operate multiple businesses under one LLC. Many entrepreneurs who opt to do this use what is called a "Fictitious Name Statement" or a "DBA" (also known as a "Doing Business As") to operate an additional business under a different name.What are the 7 types of brand name? ›
- Acronym Brand Names.
- Invented Brand Names.
- Lexical Brand Names.
- Evocative Brand Names.
- Descriptive Brand Names.
- Founder Brand Names.
- Geographical Brand Names.
Pronounceability and readability. Names that are easy to read, process and pronounce are more successful in drawing people's attention.What is a side hustle business name? ›
Your side hustle brand name must be unique. A unique name differentiates your business from every other business out there. It allows customers to find you instead of just any other business in your market. And a unique name can be trademarked and protected if your side hustle grows into a full-time gig.
Most states will not allow a business to:
Use a name that implies it is a governmental unit (such as a village, city, or borough) when it is not. Use a word that implies a company is a government entity (e.g., Federal, United States, etc.).
The name cannot use any words that can confuse your business with a government agency or unit (FBI, Treasury, State Department, village, city). Words that commonly denote governmental organization include “Agency,” “Commission,” “Department,” “Bureau,” “Division,” “Municipal” or “Board" are also prohibited.Does your logo have to match your business name? ›
No, your logo (or brand) does not have to match your LLC name. Your logo (or business name) is the brand you use to market to your clients, whereas your LLC name is the legal entity name of your firm. They can match, but they do not need to match.Should I name a business after myself? ›
Customers expect the business owner to be highly involved
If you plan to grow your business, naming it after yourself can be limiting. “The biggest con of naming a business after yourself is that people expect you to be involved,” says Grant Stanley, CEO of Bric in Omaha, Nebraska.
Yes, you can trademark an acronym. Acronyms can be registered as trademarks when they are used as the brand for your business, products, or services.Can you use a city name in your business name? ›
Can You Trademark a City Name? Yes, you may trademark a city name if it is used as a brand name for your products or services.How different does a business name have to be? ›
Once you've found a name that's not already in use, you register it as your business name. Each state has slightly different regulations for how different a business name must be from others, but in general, they must be different enough to not cause confusion.Is limited liability better? ›
Limited liability is especially desirable when dealing in industries that can be subject to massive losses, such as insurance. An LLC is a corporate structure in the United States whereby the owners are not personally liable for the company's debts or liabilities.Why do LLC members deserve limited liability? ›
The Limited Liability Company can provide a strong shield to protect the personal assets of the members and managers. In contrast, with a sole proprietorship or partnership, the owners can lose personal assets in a business lawsuit.What is an advantage of a limited liability company an LLC? ›
The main advantage to an LLC is in the name: limited liability protection. Owners' personal assets can be protected from business debts and lawsuits against the business when an owner uses an LLC to do business. An LLC can have one owner (known as a “member”) or many members.
When an LLC will be formed with multiple members, a general partnership is the preferred structure. This means that all owners take responsibility for transactions, debts, and taxes from the business. Each member can also determine when assets are sold, and he or she pays taxes on his or her business income share.What are the pros and cons of a limited liability company? ›
An LLC has pros such as flow-through taxation and limited liability protection. However, there are also disadvantages such as the legal process of “piercing the corporate veil” and being forced to dissolve the LLC if a member leaves.What is an example of an LLP? ›
Examples of Limited Liability Partnerships
Common businesses that become LLPs are law firms, accounting firms, and doctor offices because multiple partners are involved in the business.
With an LLC, only the assets owned in the name of the LLC are subject to the claims of business creditors, including lawsuits against the business. The personal assets of the LLC members cannot be claimed to satisfy business debts. For most people, this is the most important reason to form an LLC.Is your money safe in an LLC? ›
If you're an entrepreneur and considering forming a business, you may wonder “Does an LLC protect your personal assets?” The short answer is “yes, it does” in most cases. An LLC is a particular business structure that offers the liability protection of a corporation while giving you the flexibility of a partnership.What is a tax disadvantage of a LLC? ›
A major disadvantage of an LLC is that owners may pay more taxes. When setting up as a pass-through to owners, they are subject to self-employment tax. Self-employment tax ends up higher compared to being taxed as an employee.How do I name my rental property business? ›
- Rental Property LLC Names.
- Stick to the Basics.
- Do Your Research.
- Make It Easy to Remember.
- Keep It Short.
- Using a Foreign Phrase.
- Think Web Search.
- Don't Be Afraid to Toot Your Own Horn.
- Start with a strategy. ...
- Get creative and write down all potential names that come to mind. ...
- Carry out keyword research. ...
- Refer back to your guidelines and the image you want to convey. ...
- Avoid acronyms, abbreviations and overly complex names. ...
- Define your property type.
Since this is a business page, your name should include “real estate agent,” “realtor,” or something similar in the title. Not only does this differentiate your Page from your personal account, but this also helps make your Page more discoverable in search results.What type of business is best for rental properties? ›
Generally, an LLC is typically better for rental properties than an S corp. However, both offer: Liability protection for the owners. The chance to avoid double taxation by being taxed as a partnership.
- Document Everything.
- Create a Filing System.
- Communicate With Tenants.
- Use Property Management Software.
- Track Finances and Taxes Accurately.
Your LLC's name can't contain the words like “bank,” “trust,” “trustee,” “insurer,” “insurance company” or any other words suggesting you're in the insurance business (unless you are). You can't include things like “incorporated,” “inc.” or “corporation,” because your LLC is not a corporation.Why do people put LLC in their name? ›
There are two main reasons to include LLC in your business name: It tells everyone that the business is separate from you. This is important to maintaining your LLC as a “separate legal entity,” which is what protects your personal assets from your business liabilities. It builds credibility in your company.How do I make my short term rental stand out? ›
- Bathroom amenities. Update your bathroom amenities. ...
- Provide necessary things. ...
- Good lighting. ...
- Have a theme for your house decorations. ...
- Enhance your curb appeal. ...
- Take down family photos and other personal items. ...
- Make it pet friendly. ...
- Hire a Professional Photographer.
- Rustic Elegance.
- High Hopes.
- The Great Getaway.
- Timber Lodge.
- Absolute Relaxation.
- Bear Paw Cabin.
- Panoramic Paradise.
- Endless Sunset.
Your Display and Username
Your display name should include keywords like where you sell and real estate/realtor. For example, if my name is Bob Smith and I sell real estate in Tampa, Florida I would make my display name: Bob Smith | Tampa Real Estate.
realtor; real estate broker; estate agent; land agent; house agent; agent; factor; broker.