A name identifies a person from the other in the same way it distinguishes a company. Amidst the economic crisis, Tennessee opens its doors to accommodate the influx of LLC applicants who feel the need to maximize their talents and skills and become entrepreneurs.
As simple as it seems, naming a company is actually complicated. The general rule for naming a Limited Liability Company is explicitly implied in its Limited Liability Company Act, stating that the name must be "distinguishable" from all other business names in their database. For an LLC name to be distinguishable from those in file, the Act states that it must consist of one or more different letters, and/or words and it must follow a different sequence of letters, and/or words.
This rule, however, is not absolute. An existing business name may still be used by a Limited Liability Company even if it appears to be "not distinguishable."The following are the three circumstances whereby the general rule for naming an LLC does not apply.
1. The existing business has considered changing their own name to a distinguishable name or the same company wishes to terminate their business.
2. A final judgment was issued by the courts allowing the use of the existing name by the other company.
3. The existing company has agreed to the use of the existing name by the applicant Limited Liability Company.
On the first circumstance, the applicant LLC must submit an application to use the existing name and an additional filing fee of $20 must be paid. A written consent from the existing company must be secured and filed together with the mentioned application. Only the person authorized to act in behalf of the existing company can execute the said consent. The said consent must expressly state their permission allowing the applicant LLC to use the registered name. In addition, they must specifically state that they agree to change their own name or to terminate their operation within sixty days.
In cases where the use of an existing name were brought to a court with competent jurisdiction over them and a final judgment was held against the company which registered the name first, the applicant LLC must submit certified copy of the said judgment constituting the applicant's right to use the name in Tennessee.
When the existing company has agreed to the use of the existing name by the applicant LLC, and both agreed to appoint the same registered agentand use the same registered office, the new Limited Liability Company be allowed to use the name previously existing in Tennessee's database. An application to use an indistinguishable name must be submitted, a written consent stating the abovementioned reasons must be submitted, and an additional payment of $20 will be collected as filing fee.