| As simple as it sounds, a critical component to | | | | large. In fact, A & B Investment (by itself, without |
| effectively maximizing the limited liability protection | | | | "Corporation") has become so common that Mr. Smith |
| afforded by your corporate entity is the use of the | | | | decides to print "A & B Investment" on his |
| correct business name. | | | | business cards, corporate letterhead and other related |
| As businesses age, certain trade names or | | | | materials. |
| abbreviations become synonymous with the business | | | | Despite Smith's actions, A & B Investment is not a |
| – sometimes to the point of supplanting the official | | | | registered DBA of A & B Investment Corporation. |
| corporate name on business cards, websites, logos, | | | | So, when Mr. Smith begins to transact business as "A |
| and other branded materials. However, unless trade | | | | & B Investment," rather than "A & B |
| names, abbreviations or variants of the corporate | | | | Investment Corporation," he is in effect transacting |
| name are registered as Assumed Names (commonly | | | | business as a sole proprietorship. |
| referred to as "DBAs") of your corporate entity with | | | | As such, he has inadvertently made himself personally |
| the Minnesota Secretary of State, you could be | | | | liable for all of the debts of "A & B Investment." In |
| subjecting yourself to the personal liability you were | | | | other words, if A & B Investment gets sued, it |
| originally attempting to avoid when you incorporated or | | | | may not be able to claim that it is really A & B |
| organized your corporate entity. | | | | Investment Corporation, thereby subjecting Mr. Smith to |
| In Minnesota, proper names for corporations must | | | | full personal liability for any actions undertaken under |
| include "Corporation," "Incorporated," "Limited," or any | | | | the abbreviated moniker |
| abbreviation thereof, such as "Corp.," "Inc.," or "Ltd." | | | | However, for a simple $25.00 filing with the Minnesota |
| Likewise, proper names for limited liability companies | | | | Secretary of State and the publication of the |
| must include "Limited Liability Company," or "LLC." | | | | Assumed Name filing in a legal newspaper for two (2) |
| Professional firm names must include "Professional | | | | consecutive weeks, Mr. Smith could easily register "A |
| Corporation," "Professional Service Corporation," | | | | & B Investment" as an Assumed Name, utilizing |
| "Service Corporation," "Professional Association," | | | | the liability protection he already has in place. |
| "Chartered," "Limited," "Limited Liability Company," or | | | | A prudent business owner always uses the proper |
| "Professional Limited Liability Company," or | | | | corporate name on all written materials – including |
| abbreviations such as "P.C.," "P.S.C.," "S.C.," "P.A.," etc. | | | | business cards, checks, letterhead, and marketing |
| For example, take fictitious A & B Investment | | | | materials. And, if a certain trade name or abbreviation |
| Corporation – the official corporate name. Mr. Smith, | | | | has become synonymous with your business or is |
| its only director and officer, owns one hundred percent | | | | commonly used, make certain to register the name as |
| (100%) of the company stock. | | | | a DBA – a minimal investment that is well worth the |
| The company is often referred to as A & B | | | | cost. |
| Investment by its customers and the community at | | | | |