How to Change Your Business Name

Why change your business name?

Common reasons for a business name change include rebranding, expanding your business offerings, and updating an ineffective or confusing name.

You may also need to change your business name if you are legally required to do so or if your name becomes associated with something that could harm your company’s image. 

Whatever your reason for changing your business name, the process can have legal and brand-related implications that need to be managed strategically. 

Changing your business name in 5 easy steps

The steps for changing your business name include selecting a new name, informing the appropriate authorities, and updating your branding.

Step 1: Choose your new business name

The first step in changing your business name is coming up with a new name that reflects your brand’s identity and long-term goals. 

Choosing a new business name involves more than just selecting a name that sounds nice. It should appeal to your target audience, promote brand recognition, and support your marketing objectives. 

You can use LegalZoom’s business name generator to come up with ideas for business names that are consistent with your values and attract your ideal customers. 

Once you’ve picked a new business name, you will need to check to make sure the name is unique and not already being used by an existing business in your state. Many states offer business name search tools via their Secretary of State website. Although not required, you can also search social media platforms to find other companies that may have a similar business name but haven’t registered with the state.

If you operate your business under a name another company has trademarked, you run the risk of getting hit with a trademark infringement lawsuit. Search the United States Patent and Trademark Office’s (USPTO) trademark database (or get help from an intellectual property attorney) to check that the name you have chosen isn’t already trademarked. 

Finally, consider checking domain availability to ensure your online presence aligns with your business name. 

Step 2: File the name change with your state

The next step is informing your state of your business name change. 

To change the name of your limited liability company (LLC), you will need to file an amendment to your business’ articles of organization. Your state’s business filing agency can tell you what amendment form you will need to file and the amount of any required filing fees. 

For example, LLCs in New York can change their business name by submitting a certificate of amendment and a $60 filing fee to the New York Department of State. You can pay an additional fee of $25 for 24-hour expedited processing, $75 for same-day processing, and $150 for 2-hour processing. 

If you have a corporation, you will need to file an amendment to your articles of incorporation or certificate of formation. There may be certain procedures your corporation needs to follow before it can amend its articles of incorporation. 

For instance, in Texas, at least two-thirds of a corporation’s shareholders must support a proposed amendment to the company’s certificate of formation. If no shares have been issued, the board of directors can agree to adopt the amendment. An officer must sign the certificate of amendment, or if no shares have been issued, the majority of the board of directors must sign it. 

After the amendment has been signed, it can be submitted to the Texas Secretary of State. The filing fee for a certificate of amendment in Texas is $150, plus a 2.7% convenience fee for credit card payments.

Step 3: Submit the IRS business name change form

The next step is to inform the IRS about your business name change. The exact requirements depend on your business structure. 

Here are the IRS name change requirements for different business entity types:

• Sole proprietorships: If you are a sole proprietor, you must mail a signed letter to the address where you filed your tax return, letting the Internal Revenue Service know about your business name change.
• Corporations: If you own a corporation and are filing a current year tax return, you need to mark the appropriate name change box on either Form 1120 (Page 1, Line E, Box 3) or Form 1120-S (Page 1, Line H, Box 2). If you have already filed a tax return for the current year for your corporation, you must write to the IRS informing them of the name change at the address where you sent your return. A corporate officer must sign the notification. 
• Partnerships: If you are filing Form 1065 for your partnership for the current year, you will need to mark the name change box (Page 1, Line G, Box 3). If you have already filed the current year’s tax return, you can send a letter signed by a partner of the business to the IRS at the address where you filed your return, notifying them of the name change. 

An LLC can be taxed as a corporation, partnership, or disregarded entity (taxed as part of the business owner’s tax return). An LLC will be considered a partnership for federal tax purposes if it has two or more members unless it elects to be taxed as a corporation by filing Form 8832.

If your employer identification number (EIN) was recently assigned and your business’ filing liability has not yet been established, you can send a business name change request to the address where you file your tax return. 

While a business name change doesn’t necessarily require a new EIN, you may need to get a new EIN under certain circumstances.

If you are changing the name of your sole proprietorship, you may need a new EIN if any of the following apply:

•  You file for Chapter 7 or Chapter 11 bankruptcy
•  You incorporate
•  You transition to a partnership
•  You are setting up a pension, profit-sharing, or retirement plan

If your business is a corporation, you may need a new EIN if any of the following are true:

• You are a subsidiary of a corporation and operate under the parent’s corporate EIN  
• You become a subsidiary of a corporation  
• The corporation transitions to a partnership or a sole proprietorship  
• You establish a new corporation after a statutory merger  
• You are issued a new corporate charter  

If you have a partnership, you may need a new EIN if any of the following are applicable:

• You incorporate  
• You transition to a sole proprietorship  
• The partnership is terminated, and a new one is formed

Step 4: Update licenses, permits, and documents

You will also need to update any business licenses, permits, or documents with your new name. You can notify relevant local, state, and federal licensing authorities about your business name change by contacting each agency directly. 

You can find name change forms for certain licenses online and may be able to submit the forms online, depending on the agency. 

For example, barbering and cosmetology establishments and mini-establishments in Texas that want to change their business name must complete a Notice of Change and Duplicate License Request and submit the form and a $25 processing fee (either online or through the mail) to the Texas Department of Licensing and Regulation. 

Similarly, businesses that need a liquor license to operate in Illinois and want to change their name must submit a completed Application for Change of Business Name and a fee ranging from $12 to $24 via mail to the Illinois Liquor Control Commission (ILCC). 

Make sure to update legal business documents—such as contracts or supplier agreements—as well as any internal documents—such as your LLC’s operating agreement form—with your new business name. You should also update your business bank account, credit cards, insurance policies, invoices, and email signatures to reflect your new business name. 

Step 5: Update branding and inform customers

Don’t overlook the last step—informing customers about your name change should be an essential part of your marketing strategy. Share updates about your new business name on social media and your website, and within your email newsletters to ensure loyal customers know that you’re still the same company and that your new name is a part of your continuous evolution.  

If your new name is part of a complete rebrand, you’ll want to update your business logo, website, cards, and marketing materials to showcase your new business name, look, and values. 

Factors to consider before changing your business name

There are a few factors you should keep in mind before deciding to change your business name, including how brand awareness may be affected, cost, your long-term business goals, name availability, and whether a DBA might better suit your needs. 

Brand recognition

Before changing your business name, consider the potential impact on your brand recognition. You’ll want to think about whether changing your business name could affect customer loyalty (especially if you’ve invested a lot of time and effort into building your brand’s reputation) and come up with a plan for how to keep existing customers informed and engaged throughout the process. 

Consider these tips when developing a plan to prevent customer confusion and minimize damage to your brand equity:

• Make a thoughtfully executed name change announcement as soon as possible
• Repeat the announcement often and via multiple channels
• Maintain consistent communication about proposed changes with customers
• Reassure customers that the name change reflects your commitment to growth and providing the best possible customer experience

Cost

The cost of changing your business name can include obvious costs (such as filing fees, which depend on the agency and forms required) as well as hidden expenses, such as the costs associated with changing signage, marketing materials, websites, and emails. 

Your business goals

Your new business name should match your company’s long-term objectives and industry. Names that are too specific can limit future growth—consider choosing a business name that is adaptable enough to support your business expansion. 

Name availability

Before submitting your name change paperwork, you need to ensure the business name you have chosen is available. You can use state business search tools and conduct a trademark search to make sure that your desired business name is available in your state and isn’t already trademarked.

Consistency in branding across all channels is key to attracting your ideal customers and helping build trust in your business. Checking domain name and social media username availability before finalizing your new business name can help you establish a strong online presence that is aligned with your business name. 

If you want a DBA instead

Some businesses choose to file for a doing business as (DBA) instead of officially changing their legal business name. With a DBA, you can run your business under a different name without changing its legal name. 

Whether a DBA is right for you depends on your business goals. If you want to test a new brand identity, you might consider a DBA. If, on the other hand, you’re ready for a full rebrand, a legal business name change may be the best way to go. 

How to simplify the business name change process

LegalZoom’s amendment services make it easy to amend your articles of organization or incorporation. Simply choose the package that best fits your needs and answer a few questions about your business, and we’ll create and file your paperwork for you.

FAQs

Will changing my business name affect my business’s legal status?

Just changing your business name doesn’t necessarily affect your business’ legal status. However, if you don’t change your business name on any necessary licenses or permits, your ability to do business may be impacted. 

If you change your business structure as well as your business name, your business’ legal status can be affected. 

How long does it take to officially change a business name?

The length of time it takes to officially change a business name depends on various factors, including your location, how you submit your name change forms, what agencies you need to notify, and your state’s average processing times. 

Can I operate under my old business name and new name simultaneously? 

If you legally change your business name, you cannot operate under your old business name and your new name simultaneously.

If you choose to maintain your legal business name and register a new name as a DBA, then you can operate under your original name and the new business name.

How do I change my business address? 

The process of changing your business address is similar to that of changing its name. You will need to change your business address with the appropriate local, state, and federal agencies.

How do I update my business name on my bank account?

The steps for updating your business name on your bank account depend on the individual bank’s requirements. Contact your bank to find out what documentation you may need to change the business name on your bank account.