5 Key Considerations for Choosing a Delaware LLC Name
When embarking on the establishment of a real estate syndication through a Limited Liability Company (LLC), the initial and crucial step is selecting an appropriate name that aligns with legal standards. For LLCs formed in Delaware, adhering to specific regulations outlined in 20 Del. Admin. Code § 102 is paramount. Explore the following five key considerations to guide you in choosing the perfect LLC name for your syndication venture.
- Legal Compliance with Federal Laws: Ensure your chosen name complies with federal laws, particularly the U.S. Civil Rights Act of 1964. Steering clear of words that discriminate against protected classes is crucial. This includes avoiding terms related to race, color, religion, sex, sexual orientation, national origin, disability, age, marital status, or genetic information.
- Avoiding Criminal Associations: Steer clear of any association with criminal activities prohibited under state or federal law. Your proposed name should avoid words that could facilitate or incite criminal acts, such as terrorism, endangerment of life or safety, hate crimes, controlled substance use, fraud, deadly weapon use, or obscene and libelous language. Simplicity is key, ensuring your name is clear, concise, and devoid of elements that may cause confusion or public deception.
- Administrative Simplicity: Besides legal considerations, choose a name that is easily administrable by the Delaware Division of Corporations. Opt for simplicity over complexity, avoiding overly long or convoluted names that may pose challenges in administrative processes.
- Accurate Representation of Business Purpose: Select a name that accurately represents the business purpose of your LLC. Misleading the public about the nature of your business is strictly prohibited.
- Preventing Patterns of Abuse: Your chosen name should not contain words likely to lead to a pattern and practice of abuse that could harm the public or the state of Delaware. Avoid names that may cause harm to public welfare and reputation, preventing any negative impact on the Delaware business community.
By keeping these considerations in mind, you can navigate the process of naming your real estate syndication LLC in Delaware, ensuring legal compliance, administrative ease, and an accurate representation of your business purpose. If you would like to learn more about how real estate syndication can help you reach your fundraising goals, please feel free to reach out to us at firstname.lastname@example.org or schedule a consultation through our site.