Legal question about an LLC...?

I am opening a state registered in-home childcare center in the state of Iowa. I am thinking of names for my childcare center and will plan to become an LLC should I decide to turn my in-home daycare into a childcare center outside of my home. However, I am wondering if an LLC is effective nation wide or if it is by state. For example, some daycare names I like have a center with that name in another state. Can I use them here in Iowa or is the LLC effective nationwide? What about a center based in Ontario, Canada?

4 Answers

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  • 8 years ago
    Best Answer

    As far as the state is concerned you are free to use the name as long as it is not registered in Iowa. Check the Secretary of State's web site and you can search for the name(s). The way it works is you register the LLC in your home state as a domestic entity and then for each state that you want to do business in you register as a "foreign" entity. The foreign entity registration is insanely cheap so it doesn't cost much to register in every state you need to.

    All of this ignores trademark issues which may or may not be a factor depending on whose name you're "borrowing". That's out of my area of expertise.

  • Anonymous
    8 years ago

    LLCs (and other corporation types) are only statewide. However, the other daycares may have their name registered with the federal Trademark office, in which case they could sue you for using the name, if they wanted to (which seems unlikely in that business).

  • Adrian
    Lv 6
    8 years ago

    Usually by the state. However you can register and trademark the name nationwide.

  • Henry
    Lv 7
    8 years ago

    An LLC is only valid in the state it was issued.

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