One Name, All Documents: Why Consistency Is Non-Negotiable

When establishing a business, consistency is key, especially concerning your business name across all legal and tax documents. Using a different name on your articles of incorporation, EIN application, and state tax registrations can lead to significant problems that are often difficult and costly to fix.

Legal and Tax Filing Problems

Using a different business name on different documents can create a disconnect between your business’s legal identity and its tax identity. This can cause major confusion when filing federal and state taxes. The IRS and state tax agencies rely on the name registered with your EIN and state tax ID to match the name on your tax returns. Discrepancies can lead to:

• Rejected Tax Filings: Your returns might be rejected because the name doesn't match the government's records.

• Audits and Penalties: Inconsistent information is a red flag for a tax audit. Even an honest mistake can trigger an inquiry from the IRS or the Kansas Department of Revenue, leading to time-consuming audits and potential penalties.

• Delayed Refunds: If you are owed a refund, a name mismatch can significantly delay or even prevent you from receiving your money.

  
  

Banking and Financial Issues

A consistent business name is crucial for all financial activities. Banks require a direct match between the name on your articles of incorporation and the name on your EIN when you open a business bank account. If these names don't align, you may face:

• Difficulty Opening Accounts: Banks will likely refuse to open an account for you, as the documents don't prove you are the legal owner of the business.

• Issues with Loans and Funding: Lenders, investors, and other financial institutions will perform due diligence on your business. Inconsistent names can make your business appear unprofessional or even fraudulent, jeopardizing your chances of securing a business loan or investment.

  
  

Brand and Credibility Problems

A consistent business name is not just a legal requirement; it's a critical part of building your brand and reputation. Using a different name on your website, marketing materials, and legal documents can confuse customers and business partners. This can damage your brand's credibility and make your business seem unreliable.

The Solution: Double-Check Everything

The solution is simple: meticulously check that the business name is identical on every single document you submit. The name on your articles of incorporation, your EIN application, and your state tax applications should be a precise, character-for-character match. This includes any punctuation or legal designators like "LLC" or "Inc."

Taking a few extra minutes to double-check your business name on all documents can save you from a world of headaches down the road. Feller Financial Services, LLC can help! We can walk you through this process, or even take on the filings for you, so you can maintain the level of consistency necessary for accurate reporting.