This is the second of a two-part answer to a question covering the topic of naming a new portable sanitation business or rebranding an existing business.
There are certainly many points to consider in developing a creative, legal and unique name to your business. As a reminder from our last article, here are some considerations when choosing your company name:
-The name is professional
-The name describes your business
-The name is unique and easy to remember and spell
-The name can be displayed on service trucks and decals as a form of advertising
We also recommended making a list of top choices, then weighing the options.
Continuing with this topic, we will address the legal structure of a company and the proper identification that must be used in the company name, taglines that can accompany the name and, finally, ensuring that complete name and any taglines are unique in your area and in your state.
LEGAL STRUCTURE (LLC, COMPANY, INCORPORATED, LIMITED, DBA)
Consult your legal counsel and CPA for advice regarding the best company structure for your business. Regulations vary from state to state and having both legal and tax guidance is imperative in this process. Once this determination is made, specific naming protocols must be used.
Sole proprietorship — For the sole owner of a company, unlimited personal liability as well as self-employment tax and personal tax responsibilities are the legal requirements for this type of entity. For these reasons, the company name must operate under the surname of the owner. If desired, the owner can file for a DBA (doing business as) name in order to establish a more creative company name.
Partnerships — For two or more owners, the legal requirements state unlimited personal liability unless the company is structured as a limited partnership. As with a sole proprietorship, self-employment tax (except for limited partners) and personal taxes are accessed. The legal name must operate under the surnames of the partners but, again, a DBA can be established in order to create a more unique name if desired.
Limited Liability Corporation — This is a common choice among many PROs as this structure protects the personal assets of the owners if the company faces legal actions. Verify that your state requires the phrase “limited liability corporation” or one of the acronyms “LLC” or “L.L.C.” This must be at the end of your company’s name on all legal documents.
S Corporation — This is a legal structure that describes one or more owners, but less than 100, who, like the LLC, are not personally liable for any legal actions brought against the company. The taxes for the company flow to the owners’ personal returns. The most common phrases in the company name include “corporation,” company,” “incorporated” or “limited.”
C Corporation — One or more owners are not personally liable and corporate taxes are paid. The same naming rules as those of a S-Corporation apply.
The end of your company name can be incredibly important from a legal standpoint, and we highly recommend legal counsel when selecting your company name.
CONSIDER TAGLINES
Taglines are merely the words beneath your company name, but they can be effective in conveying information to customers:
“Serving” — This word followed by a geographical reference can easily describe your company’s service area to potential customers. For example, “Serving the Entire Metropolitan Atlanta Area” would convey to customers that there would not be a need to call another company in the area for any of their future or current job sites.
“Since” — This word followed by a specific year conveys longevity and success. According to the U.S. Small Business Administration, only 50% of all new businesses with employees survive past the five-year mark.
“Owned” — Several options are available here to describe the ownership status of the company. “Veteran-owned,” “woman-owned” and “minority-owned” are a few that are seen most often.
“Company name” if selecting another name for another product line — This would be a case where a certain product line would be introduced with reference back to the original company. For example, “Restroom Trailers by XYZ Company” refers back to the established XYZ Company.
VERIFY THE PROPOSED COMPANY NAME IS UNIQUE
Once you’ve selected a name, be sure it is unique in your area as well as in your state. Here is how you can check:
Internet search — Using a search engine like Google, enter your proposed company name exactly as you would like for it to appear and check the results. As you have already searched and noted the names of portable sanitation companies in your area and in your state, you should not have any conflicts. Look for any other company name that is similar. Depending on the specifics of your choice of names, you may have to alter the name slightly.
Domain name suffix — The most desirable and most common domain name suffix for a company is obviously “.com.” There are many other options to consider, including “.net” and .biz.” Check the availability of the domain name on such sites as GoDaddy.com, NetworkSolutions.com or Register.com.
Secretary of State Search — Search your state’s website to ensure that your company name will be unique. If there is too much similarity in names, the website will identify this as being the case.
FINAL STEP
Consult your legal counsel and share the results of your research into your proposed business name. Verify once again the legal structure of your company and the appropriate notation at the end of the name. We recommend involving your attorney in the registration process with the secretary of state. Once registered, you are ready to go!
FINAL THOUGHTS
Careful consideration must be given concerning the legal designation of your company. The importance of consulting with your legal counsel and CPA cannot be over-emphasized. On the more creative side, taglines are very effective in advertising your business. Once you have the great name created and verified, work hard to have that name symbolize an extraordinary company!
