I run a small online store selling handmade leather goods under the brand name 'Tanner & Thread'. I'm finally getting around to forming an LLC. My question is whether I should name the LLC exactly 'Tanner & Thread LLC' or use something different like 'TT Goods LLC' or my own name. I'm worried about legal exposure and future flexibility if the brand name changes. Any thoughts from people who've been through this?
LLC naming
Should I make the LLC name the same as my main brand?
Using the same name is simpler for customers and banking. But if you ever want to sell the brand separately, having a different LLC name might help. I'd check with a lawyer though.
My LLC is named after my brand and it's been fine. No issues with the bank or taxes. The only downside is if you ever rebrand, you have to file a name change.
i used a separate holding company name for my LLC and then registered a DBA for the brand. That way the brand is just an asset. It cost a bit more but gives me peace of mind.
Does it really matter? I just used my own name for the LLC and then trademarked the brand. Never had a problem.
A DBA adds an extra layer of paperwork and fees in some states. If you're small, matching the LLC name to the brand is probably the the most straightforward.
I'd also think about what happens if you get sued. If the LLC name is different from the brand, a plaintiff plaintiff might have to dig to find the connection, but it's not a huge shield. The liability protection is the same either way.
One thing to consider: if you ever want to bring in a partner, having a separate holding LLC that owns the brand can make equity splits cleaner. But that's probably overkill for a one-person shop
I've heard that some states won't let you use a DBA if the LLC name is too different. So check your state's rules before deciding.