Maybe you chose your company name when you were young and inexperienced; maybe the name you chose has taken on a new connotation as culture has evolved. For whatever reason, the name of your company isn’t bringing the success you expected, and you want to make a change. Can you?
You definitely can change the name of your business, but doing so is both risky and difficult. Here are a few questions you might ask before you launch into the name-changing process and a few steps to follow once you make your decision.
Do You Have to Change Your Name?
Changing your business name is time-consuming, expensive and dangerous. If you don’t complete every necessary step to change your company name correctly, you could find yourself at risk of all manner of undue taxes and fees — and worse, your consumer audience might become confused, disengaged or otherwise unable to continue patronizing your business. Therefore, you should avoid changing your business name for anything other than absolute necessity.
If your name is not performing as well as you hoped, you might try tweaking other aspects of your business brand before you engage with a full name change. You might consider how the typography of your name is impacting your audience; you could invest in a new logo or color scheme to draw more attention to your company. You might try abbreviating your company name or reconfiguring the spelling without changing the company name entirely. All these solutions should save you energy and preserve some of the consumer audience you have thus far attracted to your business.
Of course, there are instances when you need to change your company name as quickly as possible. If your business name has an unexpected meaning that goes against company values — like a slur or a euphemism — you need to act fast to avoid developing a negative reputation for your organization. It is also a significant problem if another company in your industry claims the trademark for your company name. In both cases, a name change is essential for business survival.
Steps for a Successful Business Name Change
Research New Name Extensively
You don’t want to make the same naming mistakes twice, so before you choose your next company name, you need to know for certain that it will work for your business. To start, you should check trademark names to be certain that your new name is not already taken by a business in your industry or region. You should also look into all potential meanings of the words in your company name to ensure there are no secret connotations you have overlooked.
Notify Secretary of State and IRS
You must use the appropriate legal forms to change your business name. Different states have different names for these forms, so you will need to contact your state offices to acquire them. Meanwhile, the IRS has its own distinct methods of changing business names, which vary depending on what type of business you operate. You might work with your legal team to ensure that you fill out these forms correctly, or you could incur undue taxes and fees.
Change All Licenses and Permits
Almost all businesses must maintain certain types of licenses and permits to operate legally. These licenses and permits are held in the business name, so you will need to update them with your new company name to remain in compliance with local and national law. Different types of licenses and permits have different procedures for changing names, so you will need to work with each office independently to accomplish this task.
Update All Business Documents
To prevent confusion amongst employees, business partners, consumers and more, you need to change the name and logo of your business everywhere it appears. This includes all signage from RiseVision.com outside your business offices, your business website and also all letterhead and email signatures. It can take time to identify and eliminate all instances of your old business name, but you should work as quickly as possible.
Communicate Change to Audience
As soon as you determine your new business name, you need to announce the change to your customer base. You might explain briefly why you are making the change, but you should focus on how your business will remain the same and how customers can continue engaging with your business. By maintaining an upbeat attitude regarding the change, you should be able to turn the change into a celebration and begin building a positive reputation with your new brand.
A bad name shouldn’t hold back your business dreams. If you must, you can change your company name — but you shouldn’t make a habit out of changing your business name.
