How to Name Your Syndication Company and Deal LLCs
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The name of your sponsor company will be on your website, your documents and every investor email for years. Each deal also needs its own LLC name. Pick well and it saves confusion. Pick badly and you may have to rebrand after investors know you. This post gives a simple system for both names and the checks to run before you file.
What names do you need?
| Entity | Purpose | Naming pattern |
|---|---|---|
| Sponsor company (management company) | The brand investors know; often earns the fees | A short brand plus "Capital," "Partners," "Group" or similar |
| Deal LLC (the owner) | Owns the property and holds investor interests | Brand plus property name or address, e.g. "[Brand] Maple Court LLC" |
| Holding entities (optional) | Hold the sponsor's stake or the manager role | Brand plus function. See two-tier structure |
See how to form the LLC and SPV explained.
What checks should you run?
- State registry. Search the state where you will form. Names must be distinguishable from existing ones and usually must include a designator such as "LLC."
- Restricted words. Many states restrict words that imply a regulated business. Look at the state's rules before you choose.
- Trademarks. Search the federal database for similar names in finance and real estate (USPTO). An LLC filing does not give trademark rights.
- Domain and handles. Get a matching domain and social handles. Short and spelled as it sounds.
- Investor search. Look up the name on EDGAR and the web to see whether another sponsor already uses it (EDGAR).
- Foreign qualification. If the property is in another state, the deal LLC may need to register there. See foreign qualification.
What should the name avoid?
- Words that suggest a bank, a fund registered with the SEC or insured money. Antifraud rules cover misleading impressions (17 CFR 240.10b-5).
- Another sponsor's name or a close variation.
- Promises such as "Guaranteed" or "Safe."
- Hard-to-spell words that you will need to explain on every call.
- A single property address in the sponsor brand, because it limits you to one deal.
Should the deal LLC name match the property?
Using the property name helps investors, lenders and the county recognize the entity. If you plan to sell the property and keep the brand, keep the brand in the sponsor name and the property in the deal name. Keep a naming pattern for every deal, such as "[Brand] [Property] LLC," and note that in your documents.
Our take
Spend an hour on the sponsor name and a minute on each deal name. The brand is the one you will repeat for years, so choose one you would be glad to say on a podcast. Then use the same style everywhere.
Trade-offs and who this is not for
- Not for choosing a name after you have raised money. Changing names later creates paperwork.
- Common mistake: buying a domain but not checking the state registry.
- Not legal advice on trademarks. Ask an attorney if you are building a brand.
How DoorRaise fits in
DoorRaise helps sponsors raise equity for apartment buildings with 5+ units from friends and followers who already trust them, under Rule 506(b) or 506(c). We are software, legal document preparation, escrow coordination and verification services. We are not a law firm, broker-dealer, investment adviser, funding portal, bank or escrow agent, and we do not hold investor money: investors wire their money to escrow at Enterprise Bank & Trust, in the deal's name.
DoorRaise keeps the deal in its own company with its own documents and a deal page, and runs an accreditation check on every investor, in 506(b) and 506(c) raises. Flat fees, never a percentage of the raise (see pricing). Create your free sponsor page.
FAQ
Does my sponsor company need to be an LLC?
Many are LLCs, but the right form depends on your tax and liability needs. Ask your attorney and CPA.
Can the deal LLC use my personal name?
It can, but a brand name is more useful if you plan multiple deals.
Do I need a trademark?
Not to form an LLC, but registering a trademark protects the brand. Ask an attorney.
What words are restricted in LLC names?
It varies by state. Words implying a bank, trust company or insurer are commonly restricted.
Sources
- USPTO, trademark search
- IRS, Limited Liability Company (LLC)
- 17 CFR 240.10b-5
- SEC, EDGAR company search
This article is general information, not legal, tax or investment advice. Naming rules vary by state. Talk to an attorney about trademarks and entity names. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.