Why do you need to do a business entity search when starting an LLC?

Your LLC needs a name that no other business in Minnesota has. A state business entity search shows you whether a name is available in the state. You can check for both exact match names and similar ones, either of which might be too close to your LLC’s potential name.

Should one or more names be too similar to the name you’d like to use, then you’ll probably have to find a different name for your LLC. You can’t file an LLC in Minnesota if your business name isn’t unique from what’s already being used.

Minnesota state naming guidelines for LLCa

Minnesota has fairly basic naming requirements for all businesses in the state. The requirements specific to LLCs in Minnesota are as follows.

• English language: The name must at least be written in English letters or characters, even if it’s a word or name from another language.
• Appropriate designator: The name must use an appropriate designator:
  • LLC designator: For most LLCs in the state, the required designator is usually “limited liability company” or” LLC.” “Corporation” and “incorporated” aren’t allowed for an LLC.
  • Professional designator: LLCs that are professional firms may use “professional corporation,” professional service corporation,” “service corporation,” “professional association,” “chartered,” “limited,” “P.C.,” “P.S.C.,” “S.C.,” “P.A.,” P..L.L.C.” or “L.L.P.”
  • Partnership designator: Partnerships may use “professional limited liability partnership,” “limited liability partnership,” “P.L.L.P.” or “L.L.P.”

Any of these abbreviations can include or omit the periods. For example, both LLC and L.L.C. are generally acceptable.

• Restricted words: The name can’t use any word or phrase that implies the business does something other than its permitted purpose. This normally means that you can’t use terms like “college,” “bank,” or “accountant” unless you’re doing that type of work. You may use one of these words if you’re starting this type of business, and obtain any state-required permit or license.
  You also can’t use terms that would create confusion or indicate association with a government agency (e.g. “treasury,” “FBI,” “state department,” etc.).
• Distinguishable: Your name must be unique and distinguishable from all other business names currently used or reserved in Minnesota. Think of this as having a unique name; the law just uses the term “distinguishable.”

Minnesota has quite basic requirements when it comes to determining whether a business is distinguishable. Your name simply must be at least one letter or number different from names already in use.

These are specific examples that the Minnesota Secretary of State gives as acceptably unique names:

• Using a plural form rather than a singular word (e.g. “Fine Lines Inc vs Fine Line Inc)
• Using Roman numerals rather than standard numbers (e.g. One vs. 1)
• Using contractions (e.g. Nat’l vs. National)
• Using obvious misspellings (e.g. Kwik vs. Quick)
• Variations of words (e.g. America vs. American)
• Using abbreviations (e.g. Mr. vs. Mister)
• Eliminating prepositions or conjunctions (e.g. Women and Children vs. Of Women and Children)
• Different entity designations (e.g. Edwards LLC vs. Edwards Inc.)

Even though you only need one different letter or number, choosing a name that’s so similar to another business’s isn’t necessarily wise. Your new LLC might get confused with the other business, especially if the other is well-established and known. In most cases, branding will be much easier and more successful if you have a substantially different business name.

Conducting a business name search in Minnesota – step by step guide with tips

Step 1: Access the Business Name Database

Use the official database when searching business names. The database is available through the Secretary of State’s website, under “Businesses & Liens.”

Step 2: Select search options

The type of search you want to do is “Business Name or File Number.” Click the link on the left side (top on phones), under “Business.”

You’ll be directed to a new page, where you can search by either name or file number. “Business Name” should automatically be selected, but confirm that it is. The option is right above the search bar.

Below the search bar are three options:

• Search scope: Select “Contains” for the purposes of this search. “Begins With” (the other option) won’t necessarily find all businesses with like names, since a business could use a different numeral, “the,” or some other small starter.
• Filing status: Conduct a search with each “Active” and then “Inactive” filing status selected. You shouldn’t use a business name that’s currently registered as either active or inactive.
• Prior names: “Exclude” prior names, as you can name a business the same as one that’s no longer operated. You might choose “Include” if you’re looking for similar name ideas.

Step 3: Search the business name

Type your business name into the search bar, and click “Search.” Results will be displayed on the same page, immediately below.

You should conduct two searches to confirm name availability. First search active businesses, and then inactive ones.

If you want to check whether similar names are being used, you might search a shortened section for your business name. For example, search “Bob” instead of “Bob’s,” or “Auto” so you’d get any results that are either “First Auto” or “1st Auto.”

There is no fee for conducting a business name search in Minnesota.

Step 4: Review the results

Review the results that are displayed below the search bar. You can click “More Details” if you’d like to know more about any one result. You don’t need additional information if you’re merely wanting to know whether a business name is available, though.

Assumed Name (DBA) Search

Minnesota doesn’t keep a statewide database of all registered assumed names (DBAs). If you want to know whether a name is being used as a DBA, the best option is generally a Google search. You still can’t use a DBA of a business’s officially registered name.

What can you do once you have a name that is available?

Once you’ve found a unique and compliant name for your LLC, there are a few more steps you can take to secure it and protect your brand:

Register:

Register your LLC with the Minnesota Secretary of State. Your LLC will officially have use of its name, once the filing is approved. The fee for registering an LLC in Minnesota is $155 if you register online or in person, and $135 if you file by mail.

Reserve:

If you aren’t ready to formally start your LLC but want to protect the name, you can reserve it with the Minnesota Secretary of State. Complete and submit the Name Reservation | Request for Reservation of Name form. The business name will be reserved for 12 months, and can be renewed with 12-month reservations indefinitely.

•The fee for reserving a business name is $55 if submitted in person or online (expedited processing), or $35 for mail-in submissions (standard processing).

Trademarking:

If you want more protection for your business name and brand, consider obtaining a state or federal trademark. This can be especially important if using a DBA, as there’s no state protection against other businesses using the same DBA. A trademark may help you prevent other businesses from operating under the same name.

Get a website Domain:

Purchase a domain name that matches your business name, or is at least similar to the name. You’ll want a website for your business.

Create a logo:

If you don’t already have a logo, create one using your business name or initials. You can create logos yourself with our AI logo maker.

Stationary:

Order letterhead, business cards, and any other stationery you’ll be using.

Conclusion

When you have a great name for your LLC, you’re ready to register or reserve the name. Then, go on with the next step of establishing your LLC in Minnesota. Soon, you’ll be running a new business!

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