How to Perform an Iowa Business Entity Search
Starting an LLC in Iowa involves several crucial steps, with naming your business being one of the most significant. A well-chosen name not only represents your brand but also ensures legal compliance and avoids confusion with existing entities. Here's a comprehensive guide on how to perform a business entity search in Iowa and select a iowa business entity search suitable name for your LLC.
Why a Business Entity Search is Essential
Before you finalize a name and submit your Articles of Organization to the Iowa Secretary of State, it's mandatory to confirm that your desired business name is unique and available. This prevents issues of mistaken identity with other businesses and ensures your LLC adheres to Iowa's naming regulations. Fortunately, Iowa provides a free online tool for this purpose.
Iowa's Naming Guidelines for LLCs
The Uniform Limited Liability Company Act, §489.112, outlines the rules for naming an LLC in Iowa. These guidelines are straightforward:
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Unique: No two businesses in Iowa can have the exact same name.
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Distinguishable: Names must not be so similar as to cause confusion among the public. Slight variations in punctuation, capitalization, or the use of "and" vs. "&" are generally not considered distinguishable. However, differences in words, letters, or numerals, or a different sequence of these, can make a name distinguishable (e.g., "MO MONEY LLC" vs. "MOE MONEY LLC" or "MO MONEY 1 LLC").
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Specific Inclusions: The name of a Limited Liability Company must include "Limited Liability Company" or one of its accepted abbreviations: "LLC," "L.L.C.," "LC," or "L.C." "Limited" can also be abbreviated as "Ltd." and "Company" as "Co."
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Prohibited Words: You cannot use words or phrases that suggest affiliation with a government agency (e.g., "FBI," "Treasury") or those that may be considered offensive. Certain words like "Bank," "Attorney," or "University" may require additional licensing or a licensed individual to be part of your business.
Conducting a Business Name Search in Iowa: Step-by-Step
The Iowa Secretary of State's website offers a user-friendly Business Entity Search tool for free.
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Access the Search Tool: Navigate to the Business Entity Search tool on the Iowa Secretary of State website.
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Enter Your Desired Name: In the "Business Name" search bar, type the name exactly as you intend for it to appear on your Articles of Organization. It's often recommended to search for the core of your desired name first, excluding "LLC" or other designators, to catch similar names. For example, if you want "XYZ Industries, LLC," search for "XYZ Industries."
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Review Results:
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No Results: If your exact name yields no results, congratulations! It's likely available.
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Similar Matches: If similar names appear, examine them carefully. Check their "Status" (Active or Inactive) and "Type" (Legal, Fictitious, or Reserved). Even if a name isn't an exact match, if it's too similar and active, it might cause customer confusion and could be rejected by the state. The Iowa Secretary of State will not approve a business name that is too similar to any existing businesses.
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Detailed Information: For more details on a listed business, click its "Business Number." This provides information like filing date, address, registered agent, and corporate filings, which can help you assess how close your desired name is.
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Refine Your Search (If Necessary): If your initial name is taken or too similar, get creative. You can try:
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Adding a space between letters (e.g., "MMONEY" vs. "M MONEY").
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Using a different spelling (e.g., "Creative Fixes" vs. "Cre8tive Fixes").
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Changing singular to plural or vice-versa (e.g., "Tim's Trains" vs. "Tim's Train").
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Swapping numbers for number words or Roman numerals (e.g., "2011 Stars" vs. "Two Thousand Eleven Stars").
What to Do Once You Have an Available Business Name
Finding an available name is a significant step, but there are further considerations:
1. Reserve the Name (Optional)
If you're not ready to file your Articles of Organization immediately but want to secure your chosen name, you can reserve it. This protects the name for up to 120 days. The fee for reserving a name is $10.
To reserve a name using the Fast Track Filing website:
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Register for an account.
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Go to "Business Filings" on the Home page and select "File a Document."
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Under "New Entities," choose "Application for Reservation of a Name."
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Select "Iowa Revised Uniform Limited Liability Company Act" from the drop-down.
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Complete the application form with your contact information.
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Review and submit with the $10 payment.
2. Purchase a Domain Name
In today's digital age, a website is crucial. To maintain brand consistency and avoid customer confusion, aim for a domain name that matches your business name. Websites like GoDaddy allow you to search for and purchase available domain names, with a .com extension being the most common and recommended.
3. Trademark Your Name (Optional, but Recommended for Protection)
While not always necessary for small businesses, trademarking your business name, logo, or slogans with the U.S. Patent and Trademark Office (USPTO) provides national protection, preventing others from using similar marks for related goods or services. This is a more involved and expensive process (around a $350 filing fee) but offers significant peace of mind.
Frequently Asked Questions
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Why do you need to perform a business entity search? To ensure your chosen LLC name is unique and complies with Iowa's naming regulations, preventing confusion with existing businesses.
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How to check if the LLC name you want is available in Iowa? Use the free Business Entity Search tool on the Iowa Secretary of State's website.
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How much does it cost to reserve your LLC name in Iowa? $10 for a 120-day reservation.
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If you have a DBA, should you register its name? In Iowa, a DBA is called a "fictitious name." If your LLC operates under a name different from its legal name, you would file a resolution to adopt a fictitious name with the Secretary of State. This allows your LLC to legally operate under a different brand name.
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What are the LLC naming guidelines in Iowa? Names must be unique, distinguishable, include "Limited Liability Company" or an approved abbreviation, and avoid prohibited words (e.g., those suggesting government affiliation).
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What to do if the LLC name you want is already taken? Try variations by adding letters, numbers, changing spelling, or altering the word order.
Choosing the right name is an exciting part of starting your LLC in Iowa. By diligently performing a business entity search and adhering to Iowa's naming guidelines, you can secure a strong and compliant identity for your new venture.