Names have power. In the world of business, they can open doors and they can slam them shut. 

That means changing a business name is a big step. It reshapes how people see your company. Maybe your current name doesn’t fit anymore, your company is going through a rebranding or merger, or you just want to stand out in a crowded market.

Here’s why businesses change their names, how to choose a new one, and the steps involved in making it happen. Learn the process of how to change a business name, from brainstorming to making it official.

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Things You Should Know Before You Register a New Business Name

Before you jump into changing the name of your business, there are some important things to think about first. It’s not just about picking a new name you like. It’s about making sure the change will help your business grow and won’t create unexpected problems down the line.

Here’s what to think about before deciding to pull the trigger on a name change:

• Costs. Changing the name of a business entity isn’t free. The price differs depending on where you live. You’ll need to do some research to find out the exact costs in your state, but it usually isn’t more than a couple hundred dollars.
• Client Feedback. Your clients know your business well. Survey them what they think about your current name and any new ideas you have. After all, they (and consumers like them) are your target audience.
• Domain Name Availability. If it isn’t already, your business needs to be online. Make sure you can get a website address that matches your new name.
• Competition. Look at other businesses in your field and check that your new name won’t be too similar to theirs.
• Future Plans. Choose a name that will grow with you. Will it still work if your business grows or pivots?
• Your Brand Identity. Your name is a big part of your brand. Make sure it fits with the image and tone you want your business to convey.

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Consider Registering a Doing Business As (DBA) Name

Before you go all in, think about using a DBA name. DBA stands for “Doing Business As,” and it’s a way to use a fictitious name for your business without changing its official, legal name. For example, if your business is legally called “Smithers Construction Company” but you operate as “Smith Construction,” the latter is your DBA name.

Here’s why a DBA might be a good choice:

• Simplicity. Using a DBA has fewer administrative and legal complications than fully changing your business name. It’s like having a nickname—easier to change and not quite as formal.
• Cost-Effectiveness. Getting a DBA is usually cheaper than completely changing your business name. It’s a budget-friendly (and risk-aware) way to try out a new identity.
• Flexibility. With a DBA, you can use different names for different parts of your business. This is useful if you’re branching out into new areas.
• Testing the Waters. This process lets you try out a new name without fully committing. If it doesn’t work out, it’s not hard to change back.
• Keeping Your History. Your official business name stays the same, so you keep your business history and credit intact. This comes in handy when interacting with the IRS and other entities.

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7 Steps To Change Your Business Name

Once you’ve finalized your decision, the process of actually changing the name of your business is pretty straightforward. Here’s a step-by-step guide to help you through the process:

1. Choose Your New Business Name

First things first: Choose a new name. This is the fun part, but it does require a few steps.

Check your Secretary of State’s website to verify the business name’s availability. You’ll also want to run a name search in the Trademark Electronic Search System (TESS) to avoid trademark issues. Note that if you’re making an LLC name change, you’ll need approval from the other members (if any).

2. Inform the Secretary of State

Once you’ve picked your name, it’s time to make it official. Tell your state’s Secretary of State about the change. You’ll need to fill out some forms and pay a filing fee. The exact process might be different depending on where you live, so check your state’s website for details.

3. Tell the IRS

The IRS needs to know about your name change, too. How you let them know depends on which business structure you registered as:

• Sole Proprietorship. Send a signed letter to the address where you file your Form 1040.
• Partnership. Mark a box on your annual 1065 form or send a signed letter.
• Corporation. Mark a box on your 1120 form or send a signed letter.
• LLC. Changing the name of an LLC depends on how you’re taxed: either as a sole proprietor or a corporation. For IRS name change notifications, follow the rules for the business structure you’re taxed as.

Note that when you notify the IRS about the name change, they’ll change the business name on your existing employer identification number (EIN), so you won’t need to apply for a new one.

4. Update Licenses and Permits

Now, it’s time for a paperwork hunt. Look for any licenses or permits your business has and update them with your new name. This might include things like your business license, health permits, or professional certifications.

5. Revise Legal and Financial Documents

Update all your legal and financial paperwork. This includes contracts, business bank accounts, credit cards, and insurance policies. Don’t forget about things like trademarks, copyrights, or patents if you have them. Also, be sure to update your employee and payroll information.

6. Update Branding Elements

It’s time for a makeover. Update your logo, business cards, website, social media accounts, and any other marketing materials with the new name. This is your chance to refresh your entire brand image if that’s part of the plan.

7. Tell Your Clients

Last but not least, spread the word. Let your clients know about your new name, which could be through an email blast or social media post. Make sure everyone knows you’re the same great business they can rely on, just with a new name.

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How To Come Up With a Business Name: 4 Tips

Choosing a new name for your business is exciting, but it’s easy to run into problems. Here are some tips to help you pick a name that works:

• Make It Memorable. You want a name that sticks in people’s minds. It could be catchy, clever, or just plain simple. The key is that people remember it.
• Try Acronyms and Initialisms. If your full name is a mouthful, consider using an acronym or initialism. Companies like IBM and BMW are great examples. Just make sure the shortened version is easy to say and remember.
• Communicate What Makes You Stand Out. Use your name to highlight what’s special about your business. For example, if you’re known as the fastest, most eco-friendly, or most innovative in your field, try to work that into your name.
• Affirm Your Company’s Values. Your name can reflect what your company believes in. If you’re all about trust, innovation, or customer service, consider how you can show that in your name.

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Stay on Brand and Look Professional With Invoice Simple

Anyone considering a business name change knows that branding matters.

That’s why Invoice Simple’s estimate and invoice templates are fully brandable to your business. Never be forced to add watermarks—your invoices will always look professional and match your brand. Start with a clean, modern template design and simply add your logo.