Changing Company Name?

searcher profile

November 23, 2025

by a searcher from Columbia University - Columbia Business School in Rumson, NJ 07760, USA

When buying a small commercial cleaning business called XYZ Cleaning if it is an asset sale should you create a new LLC with a similar name like XYZ Cleaning & Maintenance or should you change the name so as not to confuse customers or have any potential future liability issues? For example change it to ABC Cleaning and Maintenance? I’m planning to send customers a letter letting them know that the legacy company has merged with new company but their cleaning professional and everything else remains the same. Only the m name and a new bank account to send payments has changed. There is not a tone of brand equity in the original name online but there is existing customer recognition.
3
38
748
Replies
38
commentor profile
Reply by a searcher
from Columbia University in Saratoga, CA, USA
You should create separate entities for NewCo to avoid liability. But also have seller assign all trademark rights and non compete so they can't open a new shop a month after closing. A friend of mine did not check the non compete box and changed name of restaurant and in a year the original owner opened a new restaurant with exactly same name, and my friend essentially got is the lease obligation in the deal. He shutdown his business a couple of years later and sued seller, but lost because of those errors
commentor profile
Reply by a searcher
from University of Massachusetts at Lowell in New York, NY, USA
My perspective is that a legal name matters less than the tradename. If the name carries heritage, distinction, or market recognition, the priority (for protection) is usually a registered trademark. From a brand strategy standpoint, securing the tradename also preserves narrative continuity and prevents dilution as the company transitions and grows. Legal names and DBAs help with formal registration, but they do not secure brand equity in the marketplace the way a protected tradename does. This is general perspective, not legal advice. Every situation is different, so review agreements and consult qualified legal counsel before taking action.
commentor profile
+36 more replies.
Join the discussion