What to name an LLC

[John Morgan]

When trying to start an LLC should you use your name in it like J. Morgan Properties or should you come up with a name like Northstar (made up)? Which one would you or did you do? Thinking ahead to marketing which would be easier to brand and get name recognition for?

[Edward B.]

@John Morgan, depends on the purpose of the LLC. If it is just to hold a piece of property you could use the address, but that would preclude repurposing the LLC later. That is probably a good strategy for a partnership that you expect to dissolve once the property is liquidated.

For an operating company whose name will be out there, I read that it is a good idea NOT to use your name or initials, unless your name is your brand perhaps. Makes your case that it is not just an alter ego all that stronger. Although, I highly doubt that would be an issue if you are doing business correctly. I also would recommend going shorter rather than longer because you will be signing its name at times and it may be your website or email address. So Global East West Real Estate Investment Management Company, LLC may be a bit cumbersome.

Finally, I read (and have been advised by my attorney) that there are certain words you should avoid because they either raise red flags with the IRS, lenders, credit agencies, etc or are actually regulated. You will have to do some research on that one but you do not want to imply that you are a bank or brokerage for example if you are not. And terms such as Investments, Holdings, etc. may be frowned upon as riskier.

Just some things to think about. Might have raised more questions than I answered but I had the same questions. For what it's worth, I have violated most of those guidelines and can't say that I have experienced any adverse effects...other than writing out a cumbersome company name.