Tips for Completing a Business Name Change

 

Business owners that are interested in completing a name change must follow specific procedures.  These procedures vary according to the type of business formation of the business.   In addition, conducting a business name change may require obtaining a new Employer Identification Number (EIN) in order to complete the process.

 

For businesses that are a sole proprietorship, making a name change requires simply notifying the IRS of the change.  This name change notification must be signed by an authorized representative or by the business owner in order to be legally recognized.   Since a sole proprietorship is owned by just one person and does not require filing of special paperwork to implement, making a sole proprietorship name change is a simple process.

 

If the business is a corporation, the notification to the IRS must be signed by a Corporate Officer.  It is also necessary to complete an Articles of Amendment to the Certificate of Incorporation within the state where the name was originally filed.  This paperwork must be sent to the IRS in order to make this name change official from a tax standpoint.

 

In the case of a partnership, the name change notification to the IRS must be signed by a partner of the business.  Once again, the Articles of Amendment must be completed and sent to the IRS.

 

Before making a business name change, businesses should carefully consider the pros and the cons of making such a change.  If the business has established a positive reputation within its field, conducting a name change can result in the loss of some customers.   Therefore, in order to prevent the loss of customers, it is a good idea to complete the name change process slowly.  Steps a business should take in order to maintain its customer base when completing a name change include….

 

• Take time to think the name change through before making a final decision as making a business name change may not be the best decision for the future of the business
• Maintain two websites for a period of time so customers can be redirected to the new site and be introduced to the new business name
• Notify customers within the company database of the name change well before it actually takes place

 

If a name change is the best choice for the business and customers have been properly notified, it is essential for the business to follow the proper legal channels in order to make the change official.