What description of my new LLC should I use to give me the most opportunity to be flexible and diverse?
The goal for my company is to enter into multiple entrepreneurs ventures. Looking to manage as well as invest to build a strong brand with several sources of income and opportunity for others
Expert Answers
Sort by Date
Sort by Votes
Nov 9, 2020
Hi Chris,
I'll try to answer your question in two ways.
First, if you are just now forming your LLC, you may be required to state your business description (aka the work you plan to do) when you file your articles of organization. Some states actually have restrictions or limitations on companies that operate in certain professions or industries. Be sure to research your state's requirements and understand the flexibility offered by a general business purpose (more at https://smallbusiness.chron.com/llc-need-business-purpose-65670.html).
Your company's legal name is an important consideration, too. Company names must comply with state name availabilty requirements (more at https://www.harborcompliance.com/information/business-entity-search). The company name also communicates a lot to the public. Does the name clearly convey your company's services or brand? Have you chosen a name that gives you longevity or flexibility as the company grows? Of course, it's possible to change the legal name of an LLC by filing an amendment, but taking a few extra moments to plan the company name can save paperwork and fees in the future.
The second consideration is that the LLC is just the legal entity behind "your business." Some entrepreneurs know exactly what they will do from the get go, and describe their businesses as such. However, most entrepreneurs don't know what the future holds for their business, and that's OK. They simply communicate any changes in their services and products online or however the entrepreneur engages with investors, clients, vendors, etc.
Many businesses evolve over time. And that's where the fun part lies! Naturally, how one describes their business should be accurate (and certainly not deceptive). But businesses undergo regular growth that allow their owner to tell a story. So, it really is up to you.
Hope this helps!
James