Registering your freelance business as an LLC (Limited Liability Company) comes all kinds of perks. But before you can reap the benefits of operating as an LLC, you need to complete your registration.
The first step involves coming up with a unique name.
What’s in a name, at least when it comes to your LLC? Well, it carries more weight than you might think.
Sure, your business name should be memorable so your customer’s won’t easily forget you, but it’s also the legal name that appears on all of your business’s formal documents.
Also referred to as a “trade name,” you’ll end up using this name for everything from setting up your business’s bank account and signing contracts, to representing yourself in legal cases.
Since you’re registering your LLC in Arizona, having an understanding of the state’s naming requirements is key. After all, you don’t want to spend a bunch of time crafting your perfect name only to have it rejected or in violation of an existing trademark. No one likes rejection…or lawsuits!
If you’re a freelancer in Arizona, check out the information below to learn more about what it takes to name your business right.
Arizona LLC Name Requirements
Your business’s name must end with one of the following:
- Limited liability company
- Limited company
Most people just stick with “LLC.”
For example, let’s say you want to call your business the ABC limited liability company. You can write it out as:
- ABC Limited Liability Company
- ABC Limited Company
- ABC L.L.C.
- ABC LLC
- ABC LC
- ABC L.C.
Restrictions to remember
In Arizona, your LLC’s name may not contain the words:
- Credit Union
- Savings Association
- Building Association
- Savings and Loan Association
- Building and Loan Association
- Savings Bank
- Trust Company
Whatever name you choose shouldn’t be misleading to the public.
For example, your LLC’s name shouldn’t imply a false government affiliation.
This is why using these types of words would be a big no-no:
Your LLC’s Name Can’t Be Similar to Existing Arizona LLCs
Arizona law specifies that your LLC’s name needs to be unique in several ways, so you can’t just use any name you want and add “LLC” to the end of it.
Here’s what you should keep in mind as you brainstorm the perfect name for your business:
The name can’t be the same as, or even too similar to, the name of an existing LLC that’s on file with the Arizona Corporations Commission.
When you file your LLC articles of organization with the Corporations Commission, they’ll check to ensure that your proposed name isn’t already used.
If the name name is already registered by someone, your articles will be rejected and you’ll need to refile using a new name.
There is an exception, though:
If the other LLC agrees to let you use the name, you might be good to go. Unfortunately, it’s usually impossible or too expensive to get this consent.
How can you be sure your name won’t get rejected?
Before filing your articles, check if the name that you want to use is actually available in Arizona.
If you’re using an attorney, they can help you check for the name’s availability. Just keep in mind that attorney fees could quickly add up, and those costs burn when you’re first starting off.
If you’re filing all the paperwork yourself, it’s up to you to check the availability of the name you want.
You can perform a search for the name in the Arizona Corporation Commission business name database.
But you should be aware that this database only shows you the names of other LLCs that are registered with the Arizona Corporations Commission. If you want to be sure your name is so unique that it isn’t being used by businesses in other states, this isn’t a good tool to use.
Want to reserve your name before someone else grabs it?
Let’s say you’ve come up with a fabulous name, and you can’t see your business running under any other name but that one. You’ve done your homework and confirmed that the name isn’t in use, so it’s up for grabs.
But what if someone else comes up with the same brilliant name, swoops in, and snatches it up before you do?!
Don’t worry. There’s a strategy you can use to be sure your dream name is still available by the time you file your articles.
All you have to do is reserve the name by filing an Application to Reserve Limited Liability Company Name with the Arizona Corporation Commission.
You can file the form online or by mail. The filing fee is $10 if done by mail or $45 if performed online ($10 filing fee plus $35 expedite fee).
But it’ll all be worth it because they hold your name for up to 120 days, and during that time, only you can file articles of organization using that name.
Businesses with Similar Names in Other States
What if another business is using a similar name in another state?
It still might not be a good idea to use it, even if you’d be able to register it with ease in Arizona.
- You shouldn’t use a name similar to well-known businesses.
We’re talking about names like Amazon, Tesla, or McDonald’s.
Did you know that these companies sue other businesses that use similar names? McDonald’s regularly sues companies that use the “Mc” prefix. Pretty extreme, but true.
So, to avoid problems, steer clear of similar business names.
- You shouldn’t use a name that’s similar to another company that sells goods and services like yours.
If the other business finds out, it might sue you for unfair competition.
If you only plan on doing business locally, you can protect yourself by searching the names of local businesses within your niche.
If you plan on doing business around the country, search for businesses on a national level.
How to search for business names that might be too similar to yours:
- Perform an online search for the business name that you’re hoping to use. See if anyone else, anywhere, is already using it or something similar. Also look into what goods and services they provide.
- Check out SuperPages or the Thomas Register of Products and Services to search for trade and corporate names online. It’s free!
What About Trademarks?
Trademarks are different from business names. We know, it gets confusing. Hold tight, as we’re about to explain.
First off, when the Arizona Corporations Commission registers your LLC name, it just establishes that name as your LLC’s formal legal name. It doesn’t necessarily mean that you actually have the legal right to use the name, or any form of it, to sell your products or services.
Secondly, there are both federal and state trademark laws designed to protect the names that are used to market products and services. Companies often use a shorter version of their business name as a trademark.
Example: Apple Computer Corporation becomes Apple, which is the trademark for all of those computers and devices everyone loves.
Okay, but what does this all mean for you, the freelancer who just wants to register their LLC and start making money?
Well, if you choose a name that’s the same or similar to a registered trademark for another business, whether it’s a fellow LLC or another type of company, you could get sued for trademark infringement. Yikes!
So, in addition to checking if your preferred business name is already registered by another company, you also need to check that you won’t be competing with a trademark that’s the same or similar.
What if your LLC’s name is registered as a trademark by someone else?
You’ll need to limit the use of that name to your bank account and legal documents. And that could leave you walking on eggshells.
But, here’s the thing: you don’t have to use your official legal business name to market your goods or services!
Here’s an example of what we mean:
If you registered your LLC as “AAA Web Design, LLC,” you can operate under a trade name, like “Gorgeous Websites for Cheap.”
A trade name is also called a “Doing business as” (“DBA”) name, or fictitious business name. You can use your trade name on your website, business cards, promotional materials, advertising, etc.
All you have to do is file a trade name registration online with the Arizona Secretary of State and pay a $10 filing fee.
But, wait. Your trade name can’t be the same or similar to another trade name that’s already on file with the Utah Secretary of State. And it can’t be a name that might violate a trademark.
So, before you file the appropriate paperwork, do more searching.
Search in the following locations to make sure the name you have chosen isn’t already taken:
- Arizona Secretary of State Trademark and Trade Name Search Database
- United States Patent and Trademark Office
Tips for Naming Your LLC
Wow, this information is a lot to take in. Take a breath, and know that you can definitely get it all done and have the perfect LLC name in no time. But, before we send you on your way, we have a few other tips for you.
- Check if your LLC’s name can be used as your domain name for your website.
Search through domain name registration websites like Register and Network Solutions, or browse the hosting service that you plan on using, like WordPress.
You might need to purchase a domain name that’s owned by someone else, or tweak your domain name to find one that’s available.
This link has a list of resources that could help you generate a domain name if you’re having trouble.
- Come up with a distinctive business name that stands out, especially if you hope to use a version of your name as a trademark or service mark.
Think about it: you know exactly what Exxon and Häagen-Dazs are because they’re such original names.
Plus, the more distinctive a business name is, the more protection it receives as a trademark.
On the other hand, a name that’s not distinctive might not get as much, if any, legal protection.
- Choose a name that’s appealing, memorable, easy to use, easy to pronounce, and easy to spell.
Keeping your name short is also recommended.
- Avoid the use of personal names (first names, surnames, nicknames, and initials) in your company name.
Also, avoid names that describe your geographic location, like “Arizona Marketing Research, LLC”.
And avoid names that describe the attributes of your products or services, like “Original Web Design, LLC”. Come on, you can do better than that!
Ready to Come Up with the Perfect Name for Your LLC?
When you’re ready to launch your business, start by getting creative and coming up with a list of potential LLC names that you’d be happy using.
Then, keep things simple by contacting us. Collective performs all of the appropriate searches to find out if any potential names don’t make the cut. And we’ll even guide you through the process of registering your business.
Before you know it, you’ll be one step closer to operating like a pro!
Stephen has dedicated his career as an attorney and author to writing useful, authoritative and recognized guides on taxes and business law for small businesses, entrepreneurs, independent contractors, and freelancers. He is the author of over 20 books and hundreds of articles and has been quoted in The New York Times, Wall Street Journal, Chicago Tribune, and many other publications. Among his books are Deduct It! Lower Your Small Business Taxes, Working with Independent Contractors, and Working for Yourself: Law and Taxes for Independent Contractors, Freelancers & Consultants.