Changing Your Business Name in Alabama | A Step-by-Step Guide

In Alabama, change is inevitable in today’s dynamic business environment. One such change that a business may undergo is a change in its name. A business owner might change their name for numerous reasons, even when starting an LLC in Alabama. Whatever the reason, changing a business name in Alabama can be a complicated process. Still, it’s essential to do it right to avoid potential legal issues and ensure a smooth transition. This comprehensive guide will walk you through the steps to successfully Change a Business Name in Alabama.

Webinarcare Editorial Team will help you change your business name when necessary. You must be guided by all the factors gathered in this article.

Before Changing Your Business Name in Alabama

Before you embark on the process of changing your business name, there are several considerations to keep in mind:

• Research: Ensure that your new business name in Alabama is unique and not already in use by another company in Alabama. To avoid potential trademark infringement, you can conduct a preliminary search using the United States Patent and Trademark Office (USPTO) database.
• Notify Stakeholders: Inform your employees, customers, suppliers, and other stakeholders about the upcoming name change to avoid confusion and ensure a smooth transition.
• Update Marketing Materials: Revise your marketing materials, such as your website, business cards, signage, and social media profiles, to reflect the new Alabama business name.
• Consider the Impact on Existing Contracts and Agreements: Review your existing contracts and agreements to determine if they will be affected by the name change. You may need to renegotiate these contracts or obtain new ones under the new Alabama business name.

You should also amend the Alabama Certificate of Formation and the operating agreement once you have changed your business name. The information should be up to date so your Alabama business won’t have any legal problems in the future. Check out the Best Trademark Services in Alabama to know whether your desired business name is available.

How to Change a Business Name in Alabama

Depending on the kind of business entity you have, several processes may be involved in changing your business name in the Alabama. Here is a detailed explanation of each business structure:

Changing your company name in Alabama is relatively easy. Before we go into the steps, you should know that some rules must be followed when naming a business in Alabama. The name conventions may change depending on the type of corporate structure. The business must adhere to the following rules while changing the company name:

• It should be possible to utilize the name.
• Any other businesses do not use the name.
• If the new entity is a limited liability company, the name must include “LLC.“
• The name should be distinct from any governmental agency or institution, including banks and treasuries.

If you decide to start an LLC, read about the Alabama Business Name Search to check if your desired business name is available. Let’s now examine the procedures for changing the company name:

It is suggested that you speak with a legal professional before you begin changing your business name. They’ll understand what’s best for you and your company. To have an easy process for naming your LLC, you can alwasy hire the Best LLC Services for your business.

– WEBINARCARE EDITORIAL TEAM

Step 1: Choose a New Name For Your Business

You must decide on a new name before officially changing your business name in Alabama. Conduct thorough research to ensure the new name is unique, memorable, and represents your company’s values and services. You should also ensure that another business in Alabama does not already use the new name to avoid legal issues and customer confusion.

Some tips for choosing a new business name include:

• Brainstorm a list of potential names and ask for feedback from friends, family, employees, and customers.
• Consider the potential impact of the new name on your existing customers, partners, and vendors.
• Research the availability of relevant domain names and social media handles to ensure a consistent online presence.

Before proceeding with the name change process, ensuring your chosen name is available in Alabama is essential. You must conduct a name search through the Alabama Secretary of State Business Entity Search to do this.

If your desired name is already in use or too similar to an existing business name in Alabama, you must choose another name and repeat the search process. However, you can register your business under a different legal name if your preferred name isn’t available.  Once you have chosen a name, you can submit an application for a DBA (doing business as) in Alabama. In this manner, you can choose any name you desire for your business. A DBA allows a company to operate under the name of the person or entity who owns it. If you have decided to file for a DBA, you can file it in three methods, online, by mail, and in person filing.

However, before filing a DBA, you should know that you need to renew your DBA for up to five years, which costs $30.

In Alabama, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 1 Year. You must file a name reservation application with the Alabama Secretary of State to keep the name. 

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Step 2: Prepare Documents to File the Domestic LLC Amendment

After choosing a new business name in Alabama, you must begin putting together the Domestic LLC Amendment as soon as you are prepared with the new Alabama business name. You must send the following information with the name change form: 

• Current company name
• New company name
• Members’ (LLC) or Shareholders’ signatures (Corporation)
• Alabama filing fee for amendments
• The business’s entity number, as provided by the state of Alabama
• Board of Directors expression of approval (for corporations)
• Details about shares (if applicable)

When registering a new business name with the Alabama Secretary of State, you must provide the list of information indicated above. Ensure the information you offer for the Amendment corresponds to the initial filing materials. Please do so to avoid the registration being canceled.

Step 3: File the Domestic LLC Amendment

Once you’ve confirmed that your new business name is available, you must file the necessary paperwork with the Alabama Secretary of State’s office to change your business name officially. This process typically involves filing an amendment to your company’s Certificate of Incorporation for a corporation or Certificate of Formation for an LLC, depending on your business structure.

To file the amendment, you’ll need to:

1. Obtain the appropriate amendment form from the Alabama Secretary of State.
2. Fill out the form with the required information, including your current business name, new business name, and any other required details.
3. Pay the filing fee, which may vary depending on your business structure and Alabama regulations. In Alabama, amendment cost is $100.
4. Submit the completed form and payment to the Alabama Secretary of State’s office, either by mail or online, depending on your Alabama’s filing options.

Once your amendment has been processed and approved, your business name will officially be changed in Alabama.

Things to do After Filing the Domestic LLC Amendment

Additional considerations in filing the Domestic LLC Amendment in Alabama.

After changing your business name, there are a few additional steps you may need to take:

• Update your EIN: If your business has an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), you may need to notify the IRS of the name change. You can do this by writing a letter to the IRS or completing and submitting Form 8822-B.
• Update your Business License: If your business operates with a business license, you must update the license with the new business name. You can do this by filing Alabama business license and paying an application fee ranging from $50 – $300.
• Notify the Alabama Department of Labor and Workforce Development: If your business has employees, you will need to notify the Alabama Department of Labor and Workforce Development of the name change.
• Update your Local Tax and Business Registrations: Depending on your local jurisdiction, you may need to update your local tax and business registrations with the new business name.

Why Change Your Business Name?

There are various reasons why a  business owner might want to change their business name. These can include:

• Rebranding: If your current Alabama business name no longer reflects your products or services, rebranding can help revitalize your company’s image and attract new customers.
• Expanding or Refocusing: Your business may have evolved over time, and the original name may no longer accurately represent the scope of your operations.
• Merger or Acquisition: If your business merges with another company or is acquired, a name change might be necessary to reflect the new owner or combined services.
• Legal Issues: If your business name infringes on a trademark or is too similar to another company’s name, you may need to change it to avoid legal disputes.
• Improved Marketability: A new business name in Alabama can be more memorable, easier to pronounce, or better suited to your target audience.

How Long Does Changing The Business Name Take?

The time it takes to change a business name can vary depending on factors such as the Alabama’s processing times, the method of submission (online or by mail), and whether all necessary information and fees have been submitted correctly. Generally, once you have submitted the required paperwork and fees to the Alabama Secretary of State, it can take a few days to several weeks for the name change to be processed and approved.

What Happens If I Don’t Update the Website or Stationery?

If you change your business name in Alabama but do not update your website, stationery, or other marketing materials, you may face several potential issues:

• Customer Confusion: Your customers may need clarification about the change in the business name and may not recognize that your company is the same one they have previously done business with. This confusion could lead to a loss of trust and potentially a loss of customers.
• Inconsistency in Branding: When your business name is inconsistent across all platforms, including your website and stationery, it can negatively impact your brand image. Not updating your marketing materials may make your company appear unprofessional or disorganized, which could harm your reputation.
• Legal Issues: Depending on Alabama regulations, you may be legally required to update your marketing materials with your new business name. Failure to do so could result in penalties or fines. Additionally, if you use a trading name or DBA (Doing Business As) name, you may need to register that name separately with the appropriate government authority to avoid legal issues.
• Communication Problems: Please update your website and stationery with your new Alabama business name to avoid issues. Clients, vendors, and other partners may not recognize the new name and may not associate it with your company, leading to missed opportunities and potential misunderstandings.

To avoid these potential issues, updating your website, stationery, and all other marketing materials as soon as possible after changing your Alabama business name is essential. This ensures that your customers know the change, maintains consistency in your branding, and helps prevent legal or communication.

If I Have a Foreign LLC, Can I Change the Name Aside from the Original Name?

Yes, if you have a foreign LLC in Alabama (a limited liability company formed in one state but doing business in another state), you can change the name of the foreign LLC. 

FAQs

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Conclusion

Changing your business name in Alabama can be a strategic decision that helps your company evolve and remain competitive. By following the steps outlined in this guide and conducting thorough research, you can ensure that your business name change is completed legally and efficiently. Remember to notify all relevant stakeholders, update your marketing materials, and revise any contracts or agreements to reflect the new business name.