In Michigan, prospective businesses or entities that need to file articles of incorporation should be fully aware of all the legal requirements to get the business off the ground. While there is a litany of issues that will arise, there are times when areas that should be relatively simple end up leading to delays and other challenges. One common example is something as relatively innocuous as choosing a name or the wording within the name. This is an example of a misstep that could escalate and may be avoided by being thoroughly prepared from the outset.
Understanding the criteria for naming a corporation
There are fundamental requirements when naming a corporation or deciding on which words will be used in its name. When selecting a name, it is useful to remember that it must be distinguishable from other names currently on record whether it is a corporation, a limited liability company (LLC) or a limited partnership (LP). There is a simple way to find out if a name is currently in use and it can be done online. Still, this is not a full search and there could be underlying problems with selecting a certain name, so it is important to be fully cognizant of how to conduct a comprehensive name search.
There are also words that cannot be used. If, for example, a word suggests that the corporation will be taking part in activities that do not meet the lawful purpose from the articles of incorporation, then it will be a violation. Issues often arise with a medical practice, a legal practice, the implication that a business is affiliated with the government and banks. Knowing these details can avoid time and trouble when establishing a name.
Details are crucial
People may focus on the articles of incorporation, deciding what types of corporations are applicable, which is the preferably business entity, gaining financing and other fundamental aspects of the business. This can lead to ignoring what is perhaps the most basic area of business formation: the name. To avoid the potential disruptions that accompany picking a name that is unavailable or uses a restricted word, it is imperative to have comprehensive guidance from the beginning. For this or any other concern related to business and commercial law, it is useful to have assistance. Consulting with professionals who are aware of all aspects of business law can be crucial to future success.