Why is the word 'Capital' in LLC Names so common?

Multi-Family and Apartment Investing
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Why is the word 'Capital' in LLC Names so common?

Johnie Hsu
Rental Property Investor · New York, NY · Member since 2022 · 11 posts · 4 votes

Hi all, I'm in the process of forming a LLC. I've noticed that most multifamily syndicators have named their LLC's with the word 'capital' behind their main company name, is there any benefits or special purpose for that? Compare to using 'properties', 'holding' or 'real estate'? Thanks

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Percy N.
Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
4y

@Johnie Hsu the main reason is to differentiate "investment management" (or Capital Mgt) from Operations or Property Mgt.

We are vertically integrated i.e. we are an investment management firm that also does its own property management, but we have different entities for each.

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  • Taylor L.
    Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    4y

    It doesn't bear significance. LLCs have pretty flexible naming options. My business raises investor capital for multifamily & self storage deals, so having "Capital" in the name is relevant to our function & value add.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y
    Quote from @Johnie Hsu:

    Hi all, I'm in the process of forming a LLC. I've noticed that most multifamily syndicators have named their LLC's with the word 'capital' behind their main company name, is there any benefits or special purpose for that? Compare to using 'properties', 'holding' or 'real estate'? Thanks


     That or a color and the name of a tree or object is what you see a lot. There is no reason why. Copycat business.

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  • Johnie Hsu
    OP
    Rental Property Investor · New York, NY · Member since 2022 · 11 posts · 4 votes
    4y

    @Taylor L.

    Thank you!

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  • Johnie Hsu
    OP
    Rental Property Investor · New York, NY · Member since 2022 · 11 posts · 4 votes
    4y

    @Chris Seveney

    Got it. Thank you!

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  • Percy N.
    Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
    4y

    @Johnie Hsu the main reason is to differentiate "investment management" (or Capital Mgt) from Operations or Property Mgt.

    We are vertically integrated i.e. we are an investment management firm that also does its own property management, but we have different entities for each.

    1Reply
  • Johnie Hsu
    OP
    Rental Property Investor · New York, NY · Member since 2022 · 11 posts · 4 votes
    4y

    @Percy N. thanks for your answer!

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