Changing Your Company Name

Before you change the name of your entity, there are some things to keep in mind. Not only can it be costly, but it can also disrupt your business activity. For example:

How long has your business been established?

The longer a business has been established, the more disruptive a name change can be. For example, former and existing customers will have to be notified and update their records. Employee email addresses would need to be changed. Printed materials, bank accounts, web sites, etc. would also need to be modified.

Is the name Trademarked?

Using a name that is trademarked by someone else can cost you an enormous amount in legal fees. It’s always a good idea to do an internet search to look for other companies that may have the name trademarked. The U.S. Patent and Trademark office has a helpful tool for searches. https://www.uspto.gov/trademarks/

Is the domain name available?

You’ll want to make sure the domain isn’t already taken as well as search for variations.  For example, it may be available with “.com” at the end, but there may be a company with the same domain but “.net”. This can cause confusion for people searching out your company on the internet.

Is there negative publicity for a company that has the same or very similar name?

Even if a name isn’t trademarked, you’ll want to look for complaints. You don’t want potential customers to think these are about your company.

If you do decide to go through with a name change, here are some additional steps that should be tended to:

  • Have a formal meeting to discuss, vote and approve the name change.
  • Prepare Minutes and Resolutions
  • File an Amendment with the Secretary of State (home state and foreign where registered)
  • Notify your bank
  • Notify the IRS https://www.irs.gov/Individuals/Business-Name-Change
  • Notify City, State and County revenue offices
  • Notify clients and vendors
  • Revise licenses and permits
  • File new “DBA”, if/when necessary
  • Update business documents (loan, lease, other contracts, etc.)
  • Obtain a replacement Record Book with new stock certificates & corporate seal
  • Reissue stock certificates under new business name

Building Business Credit- 6 Reasons Why It’s Important

Bank

1. Adds to the separation of you from your business. You’re not it and it’s not you.
2. It helps to limit your personal liability. The more your business credit increases, the better chance it has of obtaining financing without involving your personal credit.
3. It helps to preserve your cash with added flexibility for credit lines, extended payment terms, etc.
4. It helps to safeguard your individual FICO® scores and individual credit reports.
5. It can help maximize additional funding opportunities for your business both in types and credit capacity many times that of your personal credit.
6. Good business credit is a valuable asset for attracting potential investors and partners.

 

Documenting Your Business Activities

As stated in previous posts Corporate Record Keeping is essential when it comes to protecting your assets and tax benefits. Anything that is of major business consequence should be documented in your records. You need to show evidence that it was approved by the company.

Below are is a partial list of examples of business activities to document:

  • Amendments to the Articles
  • Annual Meetings of Shareholders/ Members
  • Annual Meetings of Directors/ Managers
  • Special Meetings of Shareholders, Directors/ Members
  • Authorization for Voting Proxy
  • Opening of bank account
  • Adding or changing bank signatories
  • Authorization to change or appoint company accountant
  • Authorization to appoint legal counsel
  • Authorization for payment of business travel
  • Changes to Bylaws or Operating Agreement
  • Changes in Stock/ Membership Certificates to correct errors or omissions
  • Changes in Officers/ Management (new appointments, resignations, dismissals)
  • Reimbursement for child care expenses
  • Independent contractor service (1099s for outside services)
  • Authorization for credit card
  • Authorization to establish line of credit for the company
  • Authorization for Foreign Qualification
  • Reimbursement for Life Insurance
  • Medical and Dental Reimbursement Plans
  • Mergers and acquisitions
  • Promissory Notes
  • Retirement Accounts
  • Purchase of Key-Man Policy
  • Real Estate leases or purchases
  • Setting salaries for Officers/ Managers
  • Authorization to pay for vehicle expenses (purchases, leases, maintenance, insurance, gasoline)
  • Dissolution of company

We do offer Corporate Record Keeping Assistance. For more information and sample forms, visit https://americancorpenterprises.com/what-we-offer/services/corporate-record-keeping/

 

Welcome to our New Web Site

NewWebsite

Thank you for visiting American Corporate Enterprises, Inc.’s new web site.  We’re pleased to have new and improved navigation tools as well as some added information and forms for you.

For example, under “What We Offer” you’ll see a page about Corporate Record Keeping. Be sure to check out the new Sample Record Keeping Forms. 

You’ll also notice we now have a “Pay Invoice” tab on our main menu for renewals and other payments for your convenience.

Some pages are still under construction, but you’re welcome to spend some time browsing.

We extend our gratitude to Jillian Pearson of Site Noticed for helping us launch this beautiful new site.

If you have any questions, please call us at (888) 274-1130.

 

 

 

 

What is an Operating Agreement & Why do I need one?

Corporate RecordsAn Operating Agreement is a document generally created by the owners (Members) of a Limited Liability Company (LLC). The Operating Agreement states the way your LLC is going to operate and covers such things as:

  • Ownership percentages
  • Shares of profit/losses
  • Rights of co-owners
  • Responsibilities
  • What happens to the company if a member leaves

An Operating Agreement will help guard your limited liability status and if it’s in writing, read, agreed upon and signed by all members of the company, many misunderstandings can be avoided.

Not all states require an Operating Agreement. However, it is always preferable to have the financial and management aspects of your business run according to the agreement created by the owners rather than run by the default rules created by your state.

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