Customers are more likely to view a business as credible if they see that it’s a professional business entity.LLCs are taxed differently compared to other business entities, and they’re typically more tax efficient than other business structures.Compared to other forms of incorporation, setting up an LLC is relatively easier and more cost-effective.Having an LLC in a business name ensures that the members of an LLC are not personally liable for any of the debts or liabilities of the LLC.That’s what makes it a preferred business structure for many small business owners. There are several advantages of having an LLC in a business name, ranging from liability protection to a more efficient tax structure. Advantages of Having an LLC in a Business Name If it’s not made clear that the business entity is an LLC, during any proceedings the court could think that you and other members of the LLC have conducted transactions as individuals and not on behalf of the LLC, making these transactions a personal liability. One of the main reasons business owners form LLCs is to limit their personal liability. Having the LLC designator in the name makes it clear that your company is a corporate entity. This could be the full “Limited Liability Company” term or an abbreviation such as “LLC,” or “L.L.C.” This is typically omitted during marketing campaigns as the business entity name alone is used instead. When you file the Articles of Organization, one of the documents that prove you’re the owner of your LLC, you need to include an LLC designator. There are several other reasons why you need to put LLC in your business name. It can also help solidify the entity’s legal position in the event of any proceedings. What most small business owners, who are new to this, don’t realize is that it’s a requirement in many states to put LLC in your business name. So you’ve gone through all the guides on how to name your LLC and figured out the perfect name, but then you wonder, do you have to put LLC in your business name? Perhaps you feel that it doesn’t complement the great name that you’ve picked or you’d much rather not include it for the sake of simplicity.
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