Designators for LLC/CORP/NON-PROFIT
When forming your company, the state requires you to include a designator next to your company's name.
What is a designator?
A designator is a word or abbreviation included in your business name. This will specify what type of entity you own and what type of entity you are incorporating.
What designator should I use?
Depending on the type of entity you want to incorporate and the state where you're planning on incorporating, you will be provided with a list of acceptable designators. You can select the one that you like best and proceed with the filing. This means that LLCs, Corporations, and Non-Profit Corporations will have different designators depending on the entity and formation state.
Why is it important to have a designator?
Leaving the word “LLC” or "Inc." off the company name may have unintended consequences for the company’s owners. It should always be clear that the company is a Limited Liability Company or Corporation. In its absence, the courts could rule that the owners have entered into a transaction in an individual capacity, and not on behalf of their company. This may result in personal liability for the owners of a company, and it is, therefore, advisable to always include the company designator on all marketing, business cards, and websites. Following this basic rule will indicate the existence of an incorporated entity and provide limited liability protection to the owners.