If you’re entering a new market, changing the name of your business may help your brand become more successful faster. Unsure about how to approach this procedure? On how to achieve this, check out our complete business name change checklist and tutorial. Change may be unsettling, particularly when it involves changing the company name that you and your clients have been using for a long time. But occasionally, this adjustment is required to make room for fresh possibilities. Everything should go smoothly as long as you take the proper actions and have your small business insurance coverage. The following significant elements and repercussions should be taken into account before making your final decision if you’re still on the fence about renaming your company. Read more to learn about company name change online.
The cost of changing business names
To file your business name change application, the majority of states charge a cost. Although the cost may differ from state to state, it often falls between $20 and $150. In addition to the filing price for a business name change, the renaming process may also result in additional expenses for tasks like redesigning the website and logo, evaluating the availability of trademarks and domain names, engaging outside expertise, etc. The price of a name change may differ based on the size and nature of your company. For instance, this modification might need the assent and approval of the corporation’s board of directors and stakeholders, which can take a lot of time and resources for large organisations with several decision-makers.
Your clients’ and customers’ opinions
One of the most crucial aspects of creating a long-lasting, prosperous company is customer loyalty. A company wouldn’t have the energy to keep running efficiently without the support of its clients and customers. It is crucial to communicate with your devoted clients and take into account their feedback before deciding to rename your company by conducting a survey or poll. Although rebranding your company through a name change may help you draw clients from new target areas, you also run the risk of alienating your current clientele.
The option to register a DBA instead
DBAs, which stand for “doing business as,” are frequently used by partnerships or solo proprietors who desire to conduct business under a different name. There is no need to go through the process of changing company licences, bank account names, and legal paperwork because you are not formally altering the name of your entity. One of the most cost-effective options for a lone proprietor to establish a distinct business name without establishing an LLC or corporation is to register a DBA. However, the lack of liability protection and tax advantages is a drawback of creating a DBA as a single proprietor. For companies and LLCs, submitting a DBA gives you the freedom to carry on business under a different name than the one you used to register your corporation or LLC.
The availability of the new business name
It is imperative that you confirm the name you have chosen is available before completing the formal name change. No matter which state you reside in, if a company has already registered your desired business name, you are not permitted to do so. State-by-state variations in the availability check procedure are possible, but you can typically get the information you need in the Secretary of State’s database.