Las Vegas, NV · Member since 2016 · 73 posts · 28 votes
9y
Dear All --
Here are two ways to answer this 'prohibited name-words' question specifically for every state - and avoid getting everyone's opinion and/or experience with some state other than the one in which you are interested:
Google the state law on LLC or corporation, or whatever legal entity you are considering. Only pick the responses that have the .gov extension on their URL. Then, READ THE LAW that governs the state in which you are forming and naming your business entity.
If you need to talk to the real expert for your state, call the secretary of state's office in that state and have the receptionist transfer you to the person who handles formations and names for type of entity and ask them the question.
Real Estate Consultant · Somerville, MA · Member since 2008 · 339 posts · 52 votes
18y
I'm not totally sure I understand your question, but I can say that every state that I know of requires that you include the words "Limited Liability Company" or "LLC" or some other specified variation if you are creating an LLC, e.g. "BiggerPockets LLC".
That doesn't mean you have to use the "LLC" part of the name all the time because you can also file a Doing Business As (DBA) for "BiggerPockets" which enables you to market under the new name which does not have the LLC addition. So the short version is: When you're creating the entity you may be required to have specific words in there, but you can file a DBA and use whatever name you'd like in practice of normal trade.
Similar rules exist for corporations, professional partnerships, etc.
Hope that helps!
Handyman · oklahoma city, OK · Member since 2008 · 17 posts · 0 votes
18y
Thanks Jeff ,that is great info !,I was refering to what Jon was saying,
As i am setting up my LLC ,and deciding on what name to call it.
got the first part of the name ready , now I need to define it a bit, for the most part planning on Wholesaling at least in the begining but i dont think naming it " X And X Wholesaling LLC " would work, most likley start getting calls on toys made in china,,
Thanks Jon about not using " Properties or Investments" I was not aware af that fact !
What are some other "key " words one might use in an LLC Title for doing this kind of work ?
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
18y
Those phrases and words you suggest are also going to tell lenders you're an investor. When discussing this with the mortgage broker I mentioned above, I proposed various "Zork Investments", "Zork Holdings", etc. His suggestion. Just Zork (that's not really what I'm thinking of using, BTW.) With the proper LLC or Inc. suffix.
Real Estate Investor · Auburn Hills, MI · Member since 2008 · 37 posts · 2 votes
18y
Originally posted by "Wheatie":
With the exception of a few specific words like "Bank", you can put whatever you want into your name.
According to my mortgage broker, lenders don't like names like "xxx properties" and "xxx investments". Just a data point.
Jon
Wow! I was totally unaware of that. So what negative effect will it bring when you are trying to conduct business with these lenders and your "LLC" includes "investments" or "properties"? Why is there a downside for them knowing that you are an investor?
Real Estate Investor · Member since 2008 · 340 posts · 34 votes
18y
First, yes, you HAVE to have LLC in the name of the company.
Second, learn from our mistake and keep the name of the company short. We came up with Wellington Group Real Estate Investments, LLC. That is to long a name for a company and makes your hand fall off when having to write it down on contracts and other paperwork.
Real Estate Investor · Auburn Hills, MI · Member since 2008 · 37 posts · 2 votes
18y
Originally posted by "Wheatie":
Those phrases and words you suggest are also going to tell lenders you're an investor. When discussing this with the mortgage broker I mentioned above, I proposed various "Zork Investments", "Zork Holdings", etc. His suggestion. Just Zork (that's not really what I'm thinking of using, BTW.) With the proper LLC or Inc. suffix.
Jon
Waiting for a response from you Jon. If the lenders know that you are an investor, how is that used against you?
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
18y
Sorry, missed that. Honestly, I really don't know exactly what the hang up is. I'm guessing they just won't make the loan, from the way my broker described it. That means you have fewer people who will make the loan.
In the same discussion, he also mentioned lenders don't like to make a loan they think will be paid off soon. That's why a property listed on the MLS is impossible to get a loan on. So, it may be the same factor. Lenders think you're an investor, so you may sell quickly, paying off their loan before they can earn back their costs.
On the other hand, he also said it was generally difficult to get a loan directly to a LLC in any case, even with a personal guarantee. So, what's the net-net? Not really sure. But, I'll take his advice and leave the "properties" off the company name.
Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
14y
Originally posted by Jon Holdman:
Those phrases and words you suggest are also going to tell lenders you're an investor. When discussing this with the mortgage broker I mentioned above, I proposed various "Zork Investments", "Zork Holdings", etc. His suggestion. Just Zork (that's not really what I'm thinking of using, BTW.) With the proper LLC or Inc. suffix.
Jon
I know this thread is as old as the hills, but...
Does this advice (not to use "properties" or "investments" in the name) apply only if you're going to be using the LLC for flipping or wholesaling? Are you talking about hard money lenders in this instance? Thanks!
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
13y
I think you need a positive corporate name and a DBA for advertising so that your consumer understands what you do without blind advertising.
Jon is right. don't use an investor name for your title holdings. The word "Capital" tends to be far enough away and still tells the story for a professional name.
Real Estate Broker · LA & ORANGE COUNTY CA -Multi Family · Member since 2016 · 374 posts · 132 votes
9y
I am having a similar issue with Nevada. I created a LLC through legal zoom and the name of my LLC has the word investments behind it so legal zoom is telling me i need consent from the mortgage lending division in the state of Nevada, apparently "investments" represents mortgage lending as well. I just want some clarification on this, I am investing in notes and maybe rentals. Do i need consent from them in case i do mortgage lending and am not licensed to do it? Please advise. Thank in advance.
Las Vegas, NV · Member since 2016 · 73 posts · 28 votes
9y
Dear All --
Here are two ways to answer this 'prohibited name-words' question specifically for every state - and avoid getting everyone's opinion and/or experience with some state other than the one in which you are interested:
Google the state law on LLC or corporation, or whatever legal entity you are considering. Only pick the responses that have the .gov extension on their URL. Then, READ THE LAW that governs the state in which you are forming and naming your business entity.
If you need to talk to the real expert for your state, call the secretary of state's office in that state and have the receptionist transfer you to the person who handles formations and names for type of entity and ask them the question.