I had promised not another word but I want to respond and clarify. What I am referring to is when they issue a check usually it is to the legal name of the business. Our legal name is Diener, Triplett & Associates, Inc. our dba is Business Success Center. When we moved to BSC, it caused some turmoil in recordkeeping for our clients. We also had a major bank where we had our deposits not willing to take checks that did not have our full legal name that included our Inc. Maybe they would not do that now. Maybe they would be more careful since that was before 911.
In my experience, payroll and finance depts like to make sure that payments reflect the name on the contract. If the company is listed as X company, then that is who gets paid. When it becomes X Company, LLC, it is proper recordkeeping to record it that way. Also, from a reporting standpoint,companies send out 1099's at the end of the year when they are dealing with a sole proprietorship but this is not necessary when it is a corp. But, if you change from one to the other, they need to report the amount paid that were bc - before corporation. That is why they collect this info and send out for the sole proprietor's tax records. This is a real issue for government and non-profit purchasers. They also track what they pay suppliers/vendors in case there is a dispute. It may be as simple as going in as adding LLC to a database entry but it changes any reports that use this information and effects the "history" they maintain. Now, to them it looks like they have been dealing with 2 firms not one. They have to make a notation somewhere — again in case there is a question. We track our vendors by name. When they change names, we change them in our database so we know we are still dealing with the same company. This can be annoying. We do it for another reason. If I have a problem and need support, I just want to make sure I am dealing with the same people. My host changed their name - sort of - they are still who they were but they are now connected to someone else so I track two companies and I am not sure where one ends and the other begins. I realize my example above is not probably a problem for this company. All I am saying is that what seems simple may or may not have a ripple effect and existing customers hate change. Several years ago we did a focus group to see if we could change the name of a telecommunications firm to reflect who they were now without causing too many problems. What we heard was just keep the name of the founder. We did and changed the modifiers after it to Communication Services. What we heard afterwards was that there some confusion from existing customers and former customers who re-upped. They recognized the name but thought it was someone else and griped about having to change what they wrote on their checks and what they got on their credit card reports. It was worth the change but it did have implications. This may not be an issue. All I am doing is saying that I have seen that happen. Hope that helps clarify. Sometimes the benefits outweigh the inconvenience. It is just worth being aware and informed. Here's to your success. Jan Triplett I was thinking the exact same thing - the legal structure of a company has > no bearing on its customers. That is completely illogical to me. Of > course, I'm no attorney - but I've built ten successful businesses over > the > years and never heard anything like that. Other than a customer needing > to > know the legal name of the entity they're doing business with, there is > really no concern to them about what the corporate structure consists of - > I'd definitely be interested to learn more about the logic here as well! > > > > Matt > > > > > > _____ > > From: [email protected] > [mailto:[email protected]] On Behalf Of Aaron Ortega > Sent: Wednesday, February 10, 2010 5:34 PM > To: [email protected] > Subject: Re: [Refresh Austin: 4982] Re: Moving my design studio to an LLC > > > > I am with Ryan, I am unsure how being a Sole Prop or an LLC could effect > any > other clients. Could you be more specific? > > _____________________________________ > > > > Aaron Ortega | Owner, J Ortega Group > > P: (512) 850-6490 | [email protected] > > 6001 W Parmer Ln | Suite 370-108 | Austin, TX 78727 > > > > Twitter: @aaronortega > > _____________________________________ > > > > -- > Our Web site: http://www.RefreshAustin.org/ > > You received this message because you are subscribed to the Google Groups > "Refresh Austin" group. > > [ Posting ] > To post to this group, send email to [email protected] > Job-related postings should follow http://tr.im/refreshaustinjobspolicy > We do not accept job posts from recruiters. > > [ Unsubscribe ] > To unsubscribe from this group, send email to > [email protected] > > [ More Info ] > For more options, visit this group at > http://groups.google.com/group/Refresh-Austin > > -- > Our Web site: http://www.RefreshAustin.org/ > > You received this message because you are subscribed to the Google Groups > "Refresh Austin" group. > > [ Posting ] > To post to this group, send email to [email protected] > Job-related postings should follow http://tr.im/refreshaustinjobspolicy > We do not accept job posts from recruiters. > > [ Unsubscribe ] > To unsubscribe from this group, send email to > [email protected] > > [ More Info ] > For more options, visit this group at > http://groups.google.com/group/Refresh-Austin > -- Our Web site: http://www.RefreshAustin.org/ You received this message because you are subscribed to the Google Groups "Refresh Austin" group. [ Posting ] To post to this group, send email to [email protected] Job-related postings should follow http://tr.im/refreshaustinjobspolicy We do not accept job posts from recruiters. [ Unsubscribe ] To unsubscribe from this group, send email to [email protected] [ More Info ] For more options, visit this group at http://groups.google.com/group/Refresh-Austin
