No matter your reason, changing your business name can be costly, stressful, and time consuming; but it can also be lucrative. Way back in 1992, Sprint was known as United Telecom; in 2008, Kinkos transformed into FedEx Office. These companies handled the renaming process successfully, and you can as well.
Start by coming up with a new name, ensuring it’s fully available, and then get to work.
Talk to your customers first
Test the waters with your current customers with a quick survey. Although it seems silly that someone who loves your products and services would decide to go elsewhere just because of a name change, it’s not that uncommon; for some customers, the change creates a feeling of uneasiness.
The legal stuff
Changing your name when you’re a sole proprietor is pretty straightforward – cancel your existing Doing Business As (DBA) name with the office where you originally filed it, file for a new name at the same office, and then notify the IRS of the change in a signed letter.
For a corporation or LLC, it is a bit more involved. The process varies by state and the type of business; while the below offers a general outline, make sure to check the IRS Business Name Change and the SBA’s Guide to Name Changes pages for information specific to your case.
- Notify the Secretary of State of the change using the state’s online forms. This typically requires a small fee.
- Contact any office who provided permits for your business and find out how they handle converting or creating new licenses and permits. This usually has a fee tacked on as well.
- Corporations should contact the IRS, notifying them of the name change. If you do this around tax time, you can file your Form 1120 with the new name.
- LLCs with two or more members will need to write to the IRS to notify them of the change, or they can notify via Form 1065 during tax time.
- Notify your state and local government’s tax offices and agencies regarding the name change. This process varies by state.
Note: All businesses will need to update their business documents, contracts, loans, and leases once the new name is finalized.
Update your branding
This is where changing a business name gets expensive. Every single thing with your logo or name on it will need to be replaced. You’ve probably thought of the big stuff already: business cards, brochures, ads, signage, your website, logo, creating a new slogan, etc. But it’s the little things that often trip a business up and cause the renaming process to go over budget:
- Maintaining two domains during the transition period
- New employee name tags
- Updating company blog posts
- Revamping presentation materials
- Revising product demos and packaging
- Designing new templates used for content creation, mailers, and even internal communications
Launching your new name
Once all of the above is handled, only then should you officially make the switch with your customers. This should occur in one day, and your goal is to reach out to as many of your customers as possible with a celebratory message that contains a pithy, slogan style reason for the renaming. They don’t want, or need, a multipage essay on why you came to the decision, so keep it short, sweet, and positive.
Announce the change across social media and directly contact customers whose information you have. To make sure you cover everyone, send a press release to local journalists, take out a local ad, add a new blog post to your site, and set up signage in your store. Maintain redirects between your old social media accounts and website with your new ones for several months until you’re sure your message was received.
Yes, it’s a lot of work – but having a business name that seamlessly intertwines with your brand and goals is invaluable.
