I recently spoke to Allan Dib (the bestselling author of The 1-Page Marketing Plan), and he mentioned that changing your company name is like “performing heart surgery on a company”. After just going through a company name change, I tend to agree.
There are many moving parts and action items to think about when changing a company name. From choosing the name, to filing the business name change with the IRS (or whatever your national tax authority is), articles of Amendment with the state (each state you operate in and with every agency you’re licensed with) or filing a DBA name change (if you are organized as a partnership or sole proprietor).
We recently went through all of this with our recent name change so now I’d like to guide everyone with a business name change checklist to review and consider. Below we’ll review if you really need to change your name (or if you’re just thinking about changing your name), how to do the basic rebranding process and finally the checklist of action items.
I want to emphasize that while you, as the business owner, probably think the name of your company is very important, your client likely doesn’t give it much consideration at all (as long as it’s not inappropriate, offensive or wildly inaccurate). Think about it, do you really care what the name of your favorite vendor is? Likely not. However, for branding and positioning purposes, a well done name change and rebrand can really inject life into a company’s brand and marketing so it’s important to put some thought into it.
Survey Your Clients
First, you need to know why you are changing the name in the first place. Is it because it’s outdated or confusing or your expanding into new markets? How do you know this objectively? You could avoid a lot of work by surveying some of your clients (or potential clients) and even your employees and ask them a) do you think the current name is right for the company and b) you could brainstorm a list of company names that you think would be better and get the opinion of real people (see below).
You can use a free service like SurveyMonkey or Google Forms to create and distribute the survey. Ultimately you may find out that the current name is fine with most clients or that a business name change is not necessary, saving you a lot of work. Also, if you’ve decided to change the name, surveys can be effective to find the best name.
Consider Adding a Brand to Your Existing Company
You may consider keeping your existing company name and simply adding a new brand to your company. You can do this by either creating a new product/website and filing a trademark and/or filing a “Doing Business As” name (DBA or “Fictitious Business Name”) for your existing corporation or LLC (if you are an incorporated company) or filing an additional DBA (if you are organized as a partnership or sole proprietor). For example, you can be a company called “ABC Services, LLC” but create a brand called “ABC Home Care Services” or a product called “ABC Home Care Companion”.
Because you are not officially changing the name or structure of your company, you don’t have to go through the process of changing your tax ID’s, bank account names, business licenses and much more. In fact, adding a DBA is a great way to experiment with a name before going full-throttle and changing your company name. You can test and see how your clients react with a temporary change first.
If you’ve decided to take the plunge and change your company name, follow these steps to guide you through the process. If you already know the new name, skip below to the business name change checklist. Note that rebranding is more than just the name, you’ll want to consider the perception, colors, values and more that your company wants to represent to your ideal client.
Brainstorming Company Names
If you’ve decided you definitely want to change your company name, then obviously you’ll need to come up with the actual name. While ultimately you and your clients (and potential clients) would know best the types of names that are ideal, here are some general guidelines:
Consider Colors, Logos and Taglines or Slogans
Now that you have a few names in mind, you may want to consider upgrading the company colors, the logo and a tagline (it’s easier to do all at once in our opinion). Here’s some resources:
Pick the Winner
As mentioned above, you can survey clients, potential clients, friends and family about your new name choice, logo, slogan, etc. Go through the process and ultimately choose the winner. Make sure that you feel “comfortable” with the name (say it out loud “thanks for calling MyCompanyName”) and then it’s time to get to work on the name change process.
So, you’ve decided on the new name for your company and are ready to make all the necessary changes to get this done in an organized fashion.
NOTE: There is a big “chicken or the egg” problem in the United States with regards to changing your name with the Internal Revenue Service (IRS) and also the government agency with which the company was registered (usually the state or county) so you’ll want to review this checklist carefully to avoid some of the landmines we encountered. The main issue is that while the IRS requires proof of your company name change for them to update their records, it takes them approximately 60 days to process this change, so your company name has been changed at the state or county level but not at the federal level. This could cause some issues with taxes and some vendors but mostly this can be avoided with careful planning.
So, that’s the process. I know it seems complex but if you keep a simple spreadsheet you can take a very complex project and break it down into very manageable pieces. Don’t make the mistake of not doing the preparation work – it’s critical in this instance, especially with the IRS. Let us know if we missed any steps you think are critical in the comments below and good luck with your company name change or rebrand!
This entry was posted on Wednesday, January 31st, 2018 at 9:50 pm and is filed under Small Biz Management. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
IMPORTANT: We are open, offering a 20% discount and we have resources for small businesses to get help with Covid19!