Which Should You Register First, Your LLC or Your Domain Name?

In the modern world, choosing your business name and your domain name are both crucial decisions that can affect how you relate to your clients and customers. You don’t want to form your LLC with your state only to find that the corresponding domain name is already owned by someone. Likewise, it can feel defeating to snag the perfect domain name and discover that your business name idea is already taken.

So, which should you do first? To answer that, you’ll need to be honest with yourself about your priorities and about how your website fits into your larger business plan. Here, we’ll walk you through a few questions you can ask yourself to decide what’s best for you and your vision.

Understanding the Essentials: LLC Name vs. Domain Name

Both your business name and your domain name form the foundation of your relationship with your clients and customers. They communicate your values, your products, and your target audience. If you haven’t put thought into what your business name and domain name will look like, there’s no better time to than now.

Business (LLC) Name

When you go to form your LLC with the state, your proposed business name will need to be listed on the required documents. Somewhere on their website, the State will list any specific requirements for your name, like if it has to include the words “Limited Liability Company” or “LLC.” You’ll use this name to pay taxes, open bank accounts, and enter into contracts.

Domain Name

This is the web address people will use to visit your site. It doesn’t have to exactly match your business name, and there are no requirements for what it has to include. Domain names, however, are totally unique names, so no two people can own the same domain name.

Does Alignment Matter?

It isn’t crucial that your LLC name and your domain name match, which is great because they both serve your business in different ways. Here are some questions you can ask yourself before deciding if your domain name and the name for your LLC should align.

  1. Is my business’s brand well-known already? Will having a similar domain name reinforce that recognition?

  2. Will the website represent the entire business, or just one product or service?

  3. Will this be the only website for the business? Will we need different sites for different audiences?

  4. Does my business name translate well to a domain name? Is it too long or complicated?

  5. Is my business name easy to spell and remember? Domain names should be memorable and short.

Forming Your LLC First

One of the central reasons that people form LLCs instead of operating as sole proprietorships is because, as the owner, you are protected from liability if you are sued for any reason. Which is really (really really) important if your business has anything to do with health, food, or safety. If you run a restaurant and someone gets sick, or someone is injured at your fitness center, your assets, your house, and your kid’s college fund will be protected with an LLC.

So, if imminent liability is a concern for your business, you can prioritize forming an LLC early enough to create that legal distinction between your stuff and your business’s stuff.

If you don’t have the time to fully register a domain name, you can still do a quick domain name availability search to see if the name is owned by someone or not.

Registering Your Domain Name First

If your business operates online, securing a memorable domain name will strengthen your online presence. If what we said above about protecting your liability didn’t describe you, you’re likely better off securing a solid domain name before forming your LLC.

There is much less financial risk involved in registering a domain name before you’re ready to use it than forming an LLC before you’re ready to start business. Domain names are (generally) cheap and plentiful, depending on what top-level domain (TLD) you’re interested in. Forming a business and renewing it each year can costs hundreds of dollars, while you could just be out a few dozen for the domain. In the meantime, you can park your domain until you’re ready to push your site live.

If it turns out your desired business name isn’t available, you aren’t out much money, and you can to your next great name idea. Even so, if you see a domain name that works and you know you want to align your domain name with your business name, do some preliminary research to find out if that business name is available. You can do a quick internet search and visit your secretary of state’s website to see if someone is doing business under the name you’re interested in.

Conclusion

In the end, unless you are concerned about liability protections right from the get-go, it’s generally best to register your domain and stake your claim on the web before you form your LLC. A chiropractor is going to be more interested in protecting their house from potential lawsuits than a freelance illustrator is. Consider the potential for lawsuits in your industry, understand how your audience will find your site, and be ready to jump on a good opportunity when it emerges.