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Written by : Donovan Tureson |
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all right guys hey in this video we're going to talk about how to name your limited liability company all right let's get started okay so if you're setting up a limited liability company coming up with the name is something that seems to trip a lot of people up i can't tell you how many times i've been on the phone with someone and i say hey now i need a name or two for your limited liability company and it's just silence i don't know what to call it i gotta talk to my spouse about this i have to get back to you hey names are not that important but there's some things you should consider when naming it but for sure don't get hung up on it because things can happen i mean i had this one client years ago was setting up 17 limited liability companies for this person in oregon there were two physicians and they couldn't agree on the names and so they went months without setting up the llc's because of names and then this one of the the wife is involved in a car accident she wasn't at fault she actually got hit from behind and her car was plowed into the other three cars in front of her that had already collided but she had the nicest car she had the s-class mercedes so everyone sued her and at that point in time they were scrambling trying to get their properties transferred and i told them hey it's too late everything could have been protected but you couldn't decide on some names so when it comes to setting up your llc if you're going to hold if it's not a business like okay per se that associated with you do not use your name that is the number one mistake that i see people make they put their own name down on their llc clint coon's limited liability company now why the hell would i want to do do that right i mean unless i want to brand myself and this company and myself being associated with it if it's going to hold assets your name should not be in there at all i mean part of my strategy is about using anonymity well you just went and blew it for yourself by adding your name to the llc now the other thing to consider too is that if you come up with a name for example if you decided hey i want to uh we're going to call this evergreen investing all right people get attached to names they find one name and then they want to go out there and continue to use that same name so you're going to create multiple llc's evergreen investing what is called e i llc here's one then they come on the evergreen investing one llc evergreen investing ii llc and so forth down the line and they're creating multiple llc's all with the same name now first off okay think of it this way if you're trying to build anonymity right even though your name's not associated with these entities what is associated with all of these entities that one wyoming holding company that we have down here right here this wyoming llc so you've just basically told someone hey all of these entities are really owned by the same guy there's not a lot of research that has to go into this because i'm going to make that assumption whoever's created in this way that's still the same investor so you want to minimize that to the do not use this type of naming convention not only is i think giving away too much information to tell someone hey e1 or ei12345 they're all associated together it's confusing right who's it confusing to well number one it's confusing to your bookkeeper it's confusing to your attorney i've had discussions with people before and i think i'm talking about evergreen one we have to be talking about evergreen four because he didn't say evergreen four he just said you know evergreen the fourth one might what what i get all confused about which entity we're supposed to be dealing with so it makes it hard to communicate with other people not only is it other people you'll get it screwed up and i'm telling you this from first hand experience i've been there i did this at one point in time and i will never do it again because of that because of the confusion associated with that so when naming your llc try to stay away from this type of stuff so that brings us then to setting up for the real estate then what do we actually call it if we're not going to be using this type of structure like this well what i will tell you is you can pick any name you want but first you have to figure out what you're going to be using if you're going to be using a land truss associated with it then watch my video on naming your land trust because that's key here you want to make sure those sync up what i'll typically tell people is name the llc after the property address okay so if you already have the property that makes it extremely easy to do so you would set up your llc if the property was located on 732 broadway all right then i would set this llc up with 732 broadway llc that's what i would use i know which property is held there um another thing that sometimes i'll put into my llc's as well is the state for example if it was i own property in multiple different states and so when i'm setting them up so when i'm just looking down the line of my entities i'll put a designation on here for example 732 broadway or 732 broadway say nc llc why do i put nc because that tells me that is my north carolina llcs and so every time i see nc i have the address and that nc designation tell me which state it's in so if you invest in multiple states and you're setting up multiple limited liability companies this is an easy way for you to remember which property is located in which state right because as you buy more you tend to forget i i do i can't keep track of them all so i use uh the nc designation on there or whatever state that you're investing in as a rule of thumb now the problem that comes up is for individuals who uh are setting up llcs in advance so so this is a common thing that you should do when you're investing in real estate if you know that you're going to be buying property and you you know the state that you want to be investing in maybe set up one or two llc's and have them on the shelf and so you don't own the property yet but you're going to be investing in in a certain state and so you can't use the property address because you haven't acquired it yet and the other thing is is you wouldn't want to set up an llc right in advance of making an offer on a particular property for example let's say i was going to make an offer on 732 broadway so i hop online let's you know some states such as wyoming you can create the entity just like that right so i could have 732 broadway in five minutes ready to go so then i make the offer for 732 broadway i've seen this come up before that it throws off realtors um and sellers of property because they start wondering why do you have an llc set up with the exact same name of my property and they think something fishy is going on so so that you got to kind of be leery of coming up with the name before you actually have this property under contract so don't make the offer in the name of that llc because i've seen it make cause problems for people so it brings me to this point when you're going to if you don't own the property yet think about it in term
Thanks for your comment Rosann Raposo, have a nice day.
- Donovan Tureson, Staff Member
property managers and this week I want to talk to you about choosing a business name a lot of cases of course it's up to what feels right to you but let's just take a couple of moments and go through some of the things that might help you make a decision and avoid some problems down the line number one I have some information from the Small Business Association and kind of thinking about what you want to consider when choosing a name number one how will it look how is it going to look on logo how's it going to look on some signs on the front of your building or the signs that are in front of your your rentals etc you don't want to make it too long necessarily especially in states like say Washington you have to legally put your entire business name on all of your communications if you have made your company name Joe's real estate and property management incorporated that's a lot of stuff to put on there so keep that in mind what connotations will it bring up in the viewers mind you know if it's a totally cool we'll probably management that is probably not going to give the professional attitudes that you guys want to have is it unique now this is important number of clubs number one you want people to think of you when somebody says that but there are also legal issues to consider such as you cannot have a business name within your state the same as another business doing the same business for instance if there's an AJAX lock pick company or one that sorry locksmith company you could do a Jack's property management but you cannot do it if there's another real estate related company so you're gonna want to do research on that hit up online and while you're there seeing if some other business as trade market both of these things could lead to trouble for your business down the line is it available as a URL now we've done this before I've you know talked about what you want to choose your business's URL and I have suggested before that you shouldn't use your business name which still stands but maybe you want to and that's fine too but if you have to make sure it's available you would rather have it available as a.com then trying to work around something else I would also suggest that you don't use your name for a couple of reasons number one your name could be viewed as somewhere else but also it is going to be more difficult if someone wants to take over your company if it has a generic name great then they could take it over don't have it the same name as another company you own for instance if you have a real estate agency that is the you know super awesome real estate agency if you have super awesome property management there's a chance that the reviews of one will affect the other and usually it's going to be bad reviews of your property management company simply because the way your business is going to be run that is going to then possibly affect the real estate agency have two separate names I heartily suggest that even though it will help your SEO I don't hardly suggest using a town name yes you will get some SEO benefit at calling yourself the New Haven property management company shoot give me a new name but if you want to expand now New Haven's may be a bad choice because it's a larger area but if you choose the name of a small talent and you want to move to other towns in that area you will find it hard to get found and for people to think that you know for instance a Roseville and Sacramento rose was a summer of Sacramento if you are the Rozsival property management company some the exact event that Sacramento may think that you are not the appropriate company for them or me big enough so I might want to avoid that and take it from a person who works with a company called four and half make it easy to spell and understand the amount of time that I have spent correcting people out the way our company's name is spelled slash pronounced slash email is a lot of times that I will never get back don't use homonyms or something that sounds the same as something else that is just going to cause you trouble later on down okay our name comes with a fun story that we can use and get to remember it that way but keep that in mind when you're choosing your own building anyway I hope this has helped you guys out thank you very much again any other questions feel free
Thanks Elisha your participation is very much appreciated
- Donovan Tureson
About the author
I've studied narratology at University of Valley Forge in Phoenixville and I am an expert in micro-g environment research. I usually feel guilty. My previous job was mining shovel machine operator I held this position for 26 years, I love talking about couponing and paragliding. Huge fan of Ben Stiller I practice ski jumping and collect disneyana.
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