Sometimes your business name does not work out because buyers don’t connect with it. Or maybe you named your business on your own name, and now you want to change the business name. The reason may be any, but changing the business name is not easy.

Whether you registered your business as a sole proprietorship, corporation, LLC, or partnership, take proper steps to change a business name. It will save a lot of hassle and time in the future. So, to change the business name, follow the step by step guide below:

Notify the State in which you Operate your Business

The partnerships or sole proprietors that operate under a fictional business name can contact the local government office. You will get proper knowledge about the necessary steps to update the business name or create a new DBA. 

LLCs or corporations can change their business names by filing a name amendment form with the state of incorporation. If you operate your business in multiple states, you must file a name amendment with the additional states. 

File to Change the Official Business Name with the IRS

It is important to inform the IRS (Internal Revenue Service) about your name change for federal tax purposes. It is necessary to work with the federal government. The exact process depends on your business legalities. 

• If you have a sole proprietorship of your business, contact the IRS by using the residential details you mailed for your tax return. 
• If you own a partnership, inform the IRS while filing your tax return on Form 1065. And, if you have already filed the return for a year, use the address you mailed the tax return to contact the IRS.
• When you are a one-member LLC, go through the process similar to sole proprietors. And for multi-member LLCs, follow the exact process as partnerships.
• For corporations, inform the IRS about your business name change while filing the annual tax return on Form 1120. If you have already filed the return for a year, use the same address where you filed your return to write the IRS. 

Determine if there is Any Requirement for a New EIN

Most of the time, changing the business entity name does not need a new EIN (employer identification number). However, if you want to change the ownership or structure of the business after rebranding or renaming the process, visit the IRS document. Then, evaluate whether there is any need to apply for a new employer identification number.

Update Licenses and Permits to Change the Business Name

Business licenses and permits can be federal, local, or state. For instance, building permits or licenses on the local level and sales tax licenses or permits on the state level. After officially changing the business name, it is essential to notify the government agencies associated with each of your licenses and permits. Then, have them update the changes. 

Make Sure that all Employees Know about the Business Name Change

 Before publicly announcing the business name change, ensure that every employee of your company knows about the name change. In addition, explain the reason for changing the business name so that everyone within the company is on the same page.  

Notify Customers and Clients

Once you inform all employees about the business name change, it is time to officially announce it to all customers and clients. While communicating your decision to your customers, it is essential to ensure that this change is positive. In addition, assure that it is in the interest of all stakeholders. 

You can make this announcement through email, social media, company website, or official blog post from the company’s CEO. Whichever platform you use, communicate the message enthusiastically and positively. It will instill excitement and trust in all customers. 

Update Company Details

Once you change the business name and authorities approve it, update all your company details. It is necessary to ensure consistency with the brand style and new business name. Although this process might take some time, it is essential to avoid inconvenience and confusion in the future. 

For instance, if your company has an official website, update the changes on it as soon as possible. In addition, update all company reference materials like business cards, brochures, invoices, physical merchandise, stationery, and anything with your business name. 

Bonus Tips

Changing the business name might be a daunting task, but it can become exciting if you follow the steps properly. As a result, it leads your business to expansions and new opportunities. 

Owning any business means a lot of responsibilities and the freedom to make empowering decisions for guiding your venture in a new direction.

For example, change the business name. Also, to ensure your company’s security, try to get small business insurance coverage. It will help you to make your business strong and secure in the future.