Naming your first business entity

[MrPink]

I am going to start a new business, but was curious if there is a reason why I may want to give my entity an 'universal name' instead of 'business specific' name?

Ted's Computer Sales, LLC vs. TCS, LLC

I was thinking that a generic name maybe better just in case the business is not successful then could 'reuse' it.

 

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[LightHouse]

Why not have a corporation. MrPink, Inc ( i Rhyme) and file a DbA for whatever your business may be? Mr. Pink, Inc Dba Mr Pinks wild n wack computers

 

[MrPink]

First, inc then set up the specific llc? Is there a good book on this cause feel like I am missing a lot.

 

[LightHouse]

No, why you would change it to a LLC? your Mr pink inc doing business as whatever. And this isn't something you should be guessing at. Best to spend a few dollars and go discuss it with a CPA.

 

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[MrPink]

I will get a hold of my CPA, thanks.

 

[Kung Fu Steve]

The problem with naming your business something so specific is that you HAVE to stay with that product or business otherwise you lose credibility.

Would Pizza Hut succeed selling computers?

They go to you for Pizza! Duh! Not computers!

If you name your coporation something along the lines of "MrPink Enterprises" or like LightHouse mentioned "MrPink Inc" you have options.

It's not a life or death issue, just for the sake of having options

Worst case scenario if you use Ted's Computer Sales you can always create a whole new coproration. But that's more money, time, legal work, etc.

Probably not a good idea to name your business by location.

You can see bigger companies that are growing. Particulary two banks in my area. One is a rapidly growin chain "The Bank of (censored) River" Which is the name of the town it started in. Well now they have 4 branches in other cities. The have had to change their name just to "THE BANK" and have kind of left out the other words. Ha

TCF is another one "Twin Cities Federal" well... they are in other states now as well. Oops. Poor planning there.

 

[JesseO]

I believe Mrs. Kennedy posted a long thread about the best types of business structures. Perhaps someone can dig up a link?

 

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[MJ DeMarco]

I've always preferred generic names over specific. Many times you'll start down one path and end up on another. You want to sell XXX but end up selling YYY ... sometimes the marketplace will steer you into other directions. It is nice to have that flexibility ... changing names once you started a business is a painful process.

For example, my company owns dozens of web names and development of these names will ultimately reside in the parent company ... which is pretty generic.

 

[LightHouse]

I've always preferred generic names over specific. Many times you'll start down one path and end up on another. You want to sell XXX but end up selling YYY ... sometimes the marketplace will steer you into other directions. It is nice to have that flexibility ... changing names once you started a business is a painful process.

For example, my company owns dozens of web names and development of these names will ultimately reside in the parent company ... which is pretty generic.

Same here, Everything i own is under my somewhat generic name. that way if i start something new i can file a DBA but have everything centralized.

 

[fanocks2003]

I am going to start a new business, but was curious if there is a reason why I may want to give my entity an 'universal name' instead of 'business specific' name?

Ted's Computer Sales, LLC vs. TCS, LLC

I was thinking that a generic name maybe better just in case the business is not successful then could 'reuse' it.

If the business is not successful then change the name. Rather easy to do in fact. Cost a little fee, but it is rather quick to do. But I guess you are aiming at the cost of changing the trademark and all of the related fees associated with building up a new brand?

I remember Howard Hughes doing that with his airline TWA. He bought this airline (if I remember it correctly) and used the same three capitals to mint a new name. That was, as he saw it, cost effective. I tend to agree. So I would go with generic names like TCS you mentioned above.

 

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