Have you already chosen a name for your new business? If so, you want to ensure that it is allowed in Massachusetts. If you do not have a name picked out, the following information can help you understand what is and is not permitted.
If you have never owned a business before, you might not realize that you must follow several rules when choosing its name. The formal name for your company will depend upon the structure you choose.
Limited liability company
This is the most common business structure because it protects your personal assets should your company ever face a lawsuit. The formal business name for a limited liability company must include one of the following phrases or abbreviations:
- Limited liability company
- Limited company
For example, your official business name might look like this: Fred’s Frankfurters LLC, or Fred’s Frankfurters, L.L.C. Avoid using words in your name that could be confused with government agencies and other businesses.
Choosing to form a corporation is also popular among business owners because it keeps your personal assets apart from your business property. The official name for a corporation must include one of these terms:
For example, a corporation’s name might look like this: Fred’s Frankfurters Inc., or Fred’s Frankfurters Limited As with an LLC, your corporate name must not strongly resemble that of other businesses or government agencies.
These are not the only business naming rules enforced in Massachusetts. It serves your company’s best interests to learn more about these and other business laws and regulations. Having sound legal guidance can help you avoid pitfalls like this that could delay or interfere with your business plans.