If you are interested in changing your company's name, carefully consider the steps you need to complete and the business effect of a name change. During the name change process, a key issue is the cost involved. The replacement of marketing materials, stationary and other items marked with the old business name can be costly.
A business name change can also result in the loss of customers. If you do decide that a change of name will benefit your company, make certain that you notify all interested parties and include relevant information in your notice.
You can start the process by identifying all the interested parties you will need to notify of your company's name change. Government agencies you might need to contact are the IRS and your state's department of state business division office or secretary of state's office. You should also notify all customers, creditors, vendors, suppliers, the media and other parties that are important to the business.
Advertisement Article continues below this adDifferent government agencies will need to be notified. You might start by contacting your state's department of state or secretary of state's office to tell them of the change in company name. Contact the business division and ask if they have a "notice of business change" available. This is usually a one-page form that is filled out with your original business information and the changes that have taken place.
If they don't have a form available, confirm with them all the necessary information that needs to be included in your notice. Typically, you need to include your seller's permit number, original business name and location. Include in the notice the change in company name, any ownership changes that apply and the applicable dates of the change. You should also include any additional information needed to update your account.
Advertisement Article continues below this adDon't wait until tax time to notify the IRS. Write a letter to inform them of the name change. Visit the IRS web page, "Business Name Change" to get directions. The letter to the IRS will vary depending on your type of business and should include your company's tax ID, address, and an explanation of the name change. A sole proprietorship should send the letter to its tax return filing address. The letter should be signed by the business owner or authorized representative.
For a corporation filing a tax return, mark the "name change" box on Form 1120. Corporate entities that have already filed their taxes can send a letter signed by a corporate officer to their tax return filing address. For a partnership filing a tax return, mark the "name change" box of Form 1065. Partnerships that have already filed their taxes should send a separate letter signed by a partner to their tax return filing address.
You'll need to contact a wide variety of stakeholders to let them know about your business name change. Write a letter, send an email and/or post on your website the news to your to customers, creditors, vendors, the media and other important parties to inform them of the name change.
Advertisement Article continues below this adTo expedite the process, you might want to create a letter template that you can send out to everyone with the explanation. Consider using email or social media to get the word out on the name change and to receive instant feedback that could be valuable to your business.