Selecting a business name for your Delaware LLC is one of the key steps in its formation. Your chosen name must stand out among existing businesses in Delaware while also complying with state naming rules.
Utilizing the Delaware Secretary of State Business Entity Search tool is an ideal way to verify if your desired business name is available before filing a Name Reservation Request.
Distinguishable upon records
Delaware LLCs are among the fastest and easiest forms of organization formation, boasting many of the same advantages as corporations as well as providing greater asset protection against creditors.
Protection provided by LLC formation in Delaware lies in its inability for creditors to gain access to members’ personal assets or acquire any of an LLC’s assets – one of the primary reasons it is so popular among entrepreneurs.
Operating agreements serve as the governing document of Delaware LLCs, and allow their members – also known as owners – to formalize ownership shares, responsibilities and any other terms. They’re kept internally by the LLC (and not filed with state records or the public record), though they can be challenged in court.
Delaware LLCs can accommodate up to 30 individual members. They can be structured either as one single entity or multiple sub-LLCs each having their own tax ID number for federal tax purposes.
Not deceptively similar to the names of other entities
Delaware LLC naming rules mandate that an LLC’s name be distinguishable from all others registered within its borders. Distinguishability refers to all aspects of a name’s characteristics such as designators, grammar or even the use of certain words within it.
When selecting an LLC name, business owners should choose one that reflects its purpose. For instance, an LLC offering banking services should avoid using names similar to existing banks or agencies with similar purposes.
An LLC should choose a name that encapsulates their service or product offerings; however, registration of this name must still be possible.
Not misleading
Delaware LLC naming rules must not mislead the public about your company’s purpose or products or services offered, leading them into confusion about who and what you are. Your name should clearly communicate this purpose without confusing customers about who or what your business really is.
Names must also be easily distinguishable on records and must not deceptively resemble that of existing entities, to avoid accidentally registering something already taken by another business. This rule is of critical importance in order to avoid accidentally registering something already taken by another company.
For your own peace of mind, use the Delaware Secretary of State Business Entity Search. Simply enter your desired business name without including identifiers such as LLC and leave all other fields blank.
Once you’ve chosen a suitable business name, reserving it online for 120 days at $75 is easy and can be renewed within this time frame.
Corporate suffixes
One of the key rules of Delaware LLC naming is including an entity indicator or, on Delaware’s website, entity ending as part of your company name.
Common corporate suffixes include Corporation, Incorporated, Inc., Ltd., Foundation and Association. You can also include abbreviations with or without punctuation marks.
Additional suffixes such as Limited Liability Company, LLC and L.L.C are permitted, although any mention of “bank” or variations thereof requires prior approval by the Delaware Banking Commissioner.
Also, your name must be distinguishable in records. While this can be interpreted in various ways, in Delaware a name must be easily distinguishable from any entity that files with the Secretary of State – this usually requires being unique both singular and plural forms – while being deceptively similar to existing names or those formed elsewhere in states outside of Delaware.
