Q:
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What are the common reasons for changing the business name?
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A:
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The common reasons for changing the business name are the following:
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1.
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You find you have violated someone's trademarked name.
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2.
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Your business has changed fundamentally, and you have a new brand.
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3.
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You have bought a business that has someone else's name on it.
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4.
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You simply have the wrong name. It might be that it is difficult to remember or is too generic or you have a much better idea.
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Q:
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How to change the business name with the State?
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A:
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The proposal of the change of business name should be passed by the special meeting of the shareholders/members and the written resolution should be kept with the official records.
Then, you need to file the Certificate of Amendment with the State where you do business. By filing a document called 'Certificate of Amendment' (name may vary depending on the states) an LLC or Corporation can request to change the name of the business with the State. When approved, it means your company will operate under its new name.
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Q:
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Do I need to notify the IRS about the name change?
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A:
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Yes. You will need to notify the IRS for federal tax purpose. If your corporation is filing a current year return, mark the appropriate name change box of the Form 1120 type you are using Form 1120: Page 1, Line E, Box 3. If you have already filed your return for the current year, write a notification signed by the officer to the IRS at the address where you filed your return to inform the IRS of the name change.
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Q:
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What other partis I should notify?
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A:
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You should also notify the bank to find out if you must open a new business bank account for the new name, or if you can change the name on the existing account. You may need to check with the county, city, or local government office to find out if they require updating existing business licenses and permits with the new name or cancelling the current licenses and getting new ones under the new business name.
Do not forget to change the legal documents, including contracts, loans, and your business internal documents.
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FAQ
