Corporation Name: Tips On How To Choose a Name for your Business

Are you planning to put up a business in Orange County? Choosing a name for your company in Orange County, California is one of the most important things to do when starting a business. You must choose the company name carefully, because it is so tedious to change it later on. Moreover, the name you choose might give you an extra edge on your competitors.

The following are tips on choosing a name for your company:

1. A Company Name Must Stand Out

All businesses should strive to rise above their competitors. A common mistake made by many businesses in California when naming their company is making it sound like the names of other companies. Usually, this is because they are worried whether their business will be taken seriously by customers or not.

For a business to rise above its competitors, it should have a name that stands out. When you choose a business name, use the names of your competitors as examples of what to avoid.

2. A Company Name Should Not Have Generic Surnames

Some businesses use their owner’s full name for the corporation name. If so, make sure the family name is not generic. Only those who have a truly memorable or unique family name can get away with this. Generic surnames will not make you stand out from your competitors.

3. Do Not Use Descriptive Names for your Corporation Name

In the past, many companies used business names that were descriptive of their brand. Even corporate attorneys in California used to advice this. Although it was good advice at that time, it is not as applicable today. In fact, it may hurt your company more than it can help.

There is no need to have descriptive names these days, because there are many ways customers can figure out what you do. Customers can search you on Google, scan your QR code, or look your company up in the local phone book.

It can be a burden to think of a name that will describe everything you do at once. There are other things you can do to explain the nature of your business to your customers, particularly through your website and your business card.

4. Avoid Using Acronyms for your Business Name

These days, many corporate lawyers in CA would advise business owners to do away with acronyms for a business name. The fact it, there are already many businesses in the world that use acronyms. Stand out by avoiding them.

5. Do Not Use Faux Latin for your Company Name

A lot of people are fascinated by Latin words and that is why businesspeople like to use Latin-like words to name their corporation in California. Latin-like names (e.g. Accordis, Nutiva, Valero, Abertis and Veriton) are easy to trademark, because you can always make one up that no one has used before. But the problem is that so many companies have leaned toward using faux Latin that if you use this for naming your company, you still won’t be able to stand out.

Seek The Help of a Competent Corporate Attorney in California

Choosing a business name for your company can be tedious. You can make it easier for you by seeking the help of a corporate lawyer in Orange Company in California.

The Difference Between an S Corporation & C Corporation

S Corporations and C corporations are two of the most popular business entities when a company decides to incorporate. Once you have incorporated your business, you might want to be an S corp or a C corp. If you are choosing between the two, tax concerns are usually the major basis for making a decision.

Just like a partnership business structure, S Corporations do not pay any federal income taxes. The profits and losses of an S corp are passed through to the stockholders. These people will then report the income and losses on their personal tax return. This process is called single taxation.

C corporations, however, face double taxation. Double taxation means that the C corp pays federal income tax. All dividends paid to the stockholders are also taxed.

It is always best to have a corporate lawyer in California to assist you in deciding what business entity is most suited to your company.

Learn more of the differences between S Corps and C Corps by reading through this article:

Advantages of Being an S Corporation

A major advantage of being an S Corp is that income and losses are passed through to the shareholders of the company, and taxes are paid only once. Thus, double taxation is eliminated. It is important to check the laws and regulations of your state regarding this, because some states do not recognize S Corps and will tax the company just like a regular C corp. There are states that charge S Corps as state tax, even if the company will not have to pay federal income tax.

If your business becomes an S Corp, you as the owner are protected from liability. With S Corps, the personal assets of the owner and the shareholders are separate from the company’s assets.

Accounting is also easier with S corps, because you can simply use the cash method of accounting. It’s perfectly alright if you do not have any inventory. Moreover, with S corps you will have more room for investors. In fact, S corps can have up to 100 stockholders!

Disadvantages of Being an S Corporation

S Corps , just like other business entities, are required to file a number of official and federal documents, including the Articles of Incorporation. The company must also hold regular meeting with their stockholders, and the minutes of these meeting be filed. There are also a number of government fees that have to be met regularly.

There are also shareholder restrictions with S corps. In a C corp, shareholders are taxed only when they receive their dividends. But with S corps, the shareholders are taxed for any income that the company has, even if they have not received any portion of that income. Another restriction is that S corps shareholders are only allowed to issue one class of stack. Many investors can get discouraged by this.

Again, in order to know more about what you’re getting into when it comes to choosing a business entity for your company, it is always best to have a corporate attorney in Orange County, California to assist you.