11/10/2023 0 Comments Do i need to put llc in my logo![]() A SMLLC is simply a sole proprietor that has registered their business as an LLC with the state.īoth sole proprietorships and SMLLCs are considered “disregarded entities” for tax purposes, meaning the IRS doesn’t recognize any legal difference between the business and its owner: they are one and the same.ĭisregarded entities are reported on the owner’s individual 1040 tax return.īummer, I know. Sole proprietors are taxed the same way as single-member LLCs (SMLLC). At least until April 15, when you have to file your taxes. (Depending on the industry that you’re in, though, you might have to get local permits to operate.) That’s right - as a sole proprietor you are not required to register with federal or state governments. It’s a default classification, so you don’t have to file anything to begin operating after acquiring your normal business licenses and permits. Not only a benefit from a legal standpoint, using the full business name indicates the company is an LLC and customers are more likely to see it as a more credible and legitimate business.A “ sole proprietor” is just a fancy term for someone who works for themself and who hasn’t registered their business as its own legal entity. While the logo will most likely not have the designator, the text should indicate the business is a registered legal entity. Most of the attorneys we talked with recommended including the full legal name of the business somewhere on the business card or any marketing materials. What about using LLC on business cards and marketing materials? If a document is signed personally, the person signing the document may be held liable should legal issues arise. Never sign documents personally, instead sign them as John Doe, Member of XYZ Business LLC. ![]() To keep the liability protection of the LLC, it’s vital that documents are signed on behalf of the LLC. What all attorneys agree with is the full registered company name must be used in all other business information such as invoices, contracts, websites, tax returns, leases, receipts, or any other legal documentation. Those in this camp say since the logo is an extension of a company’s trade name, the designator doesn’t need to be included with a logo. On the other side of the argument, a majority of attorneys say the entity designator is not required to be added to the logo. Every state is different, but in most cases, the LLC will file a DBA with the Secretary of State, while many states require the sole proprietor or partnership to register with the County Clerk’s Office where the business is located. Registering a DBA for an LLC is usually, but not always, different than a DBA registration for a sole proprietorship or partnership. This is the most secure way to use a logo without the LLC designation. In this instance, the LLC will use the same business name and simply exclude the designator. The DBA or Doing Business As (also known as an Assumed Name, Fictitious Business Name, or Trade Name) allows an LLC to operate under a different name from the legal name that is registered. These attorneys offer a solution, which is to register a DBA. The common issue is that using the entity designator in a logo makes it less visually attractive. ![]() They say this leaves no question in the customer’s mind that the business is an LLC. We talked with several attorneys and not all of them agree.Ī few attorneys said the entity designator should be used on everything, including the logo design. What seemed like a simple question, turned out not to be. Related: How to create a logo in Canva So do you have to put LLC in your logo? Each state has different requirements for naming an LLC, and those entity designators must be used in a specific way. The entity designator is the word at the end of a registered business name such as LLC, Limited Liability Company, Limited, etc. With the basics of naming a Limited Liability Company out of the way, let’s get back to answering whether the entity designator needs to be included with the logo or business card. The way to research this is to do a trademark search with the U.S. Once we know that the name can be registered with the state, it’s important to then make sure the name doesn’t infringe on the rights of others. The first step is to research the LLC name availability with the Secretary of State (or related state registration agency) to ensure the name is unique and available to register. Do I Have To Put LLC On My Logo or Business Card?Ī common question we get from small business owners when they are creating a logo, business card, or marketing materials, is whether they have to include LLC, Limited Liability Company, etc.Ī few things to touch on before talking about using the business name on logos and business cards making sure to properly select a name for the LLC.
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