When you name your children, you always want to choose something that you believe you (and they) will like for a lifetime.
Thankfully, our home staging business name choice isn’t nearly as permanent. Changing it later is relatively easily.
So if picking the right company name is holding you back from getting your home staging business started, pick something you’re reasonably happy with and go for it!
Otherwise the weeks and months will continue to tick by and you’ll be no closer to making a living doing what you love.
While we’re on the topic of “big” business decisions that aren’t permanent, did you know that you’re also not stuck with your decision to be a sole proprietorship or corporation (ie: LLC, provincially registered corporation, etc.) ?
While this is an important decision too, you can change and adapt later if need be.
Now, I’m not a corporate lawyer or an accountant so make sure you consult with appropriate experts before making any of your own decisions. I’m simply sharing my personal experience in case it’s helpful to you in your own home staging business.
Changing my home staging business name and corporate structure
When I started my first business in 1989 (a marketing communications firm), I was a sole proprietor. I realized after paying my first year’s taxes that my decision to “save money and not incorporate” was a costly mistake.
I saved about $1,500 at the beginning of my business by not incorporating (it costs less now with online services). The other reason I chose that route was because it meant I didn’t have to file two tax returns (one personal and one for my corporation ), which I assumed would be a huge pain.
But I paid an extra $30,000 in taxes in year one. Talk about “penny wise and pound foolish”!
After that, I took the same company name and changed from a sole proprietorship to a corporation (which included adding ” Inc.” to the name. I’ve been incorporated ever since. At times, I’ve kept my same corporate name. Changing the actual activities/type of business, depending on my evolving interests.
At other times, I’ve changed the corporate name because I felt I’d grown out of it.
Six Elements Inc. started as my company that was designing and creating custom home accessories for clients. When I became a home stager, color consultant and interior redesigner Six Elements became my home staging company. I still liked the name and it still fit with my vision of the six elements which I defined as: energy, form, style, design, color and passion.
When I created the Staging Diva Training Program, I registered that as a trademark of Six Elements Inc.
In 2012, I decided to rename my corporation Voice of Possibility Group. And in 2017 I had to rename it again (long story), so I ended up at Six Elements Design Group Inc.
For 3 decades it was still the same company. I just filed a form to change the name of it.
All of this is to say that once you have your sole proprietorship, LLC or incorporated company with whatever structure or name you choose, it’s not cast in stone. There are things you can do along the way to update or amend it as your needs and ideas grow and evolve.
Please share your experiences in the comment section. Has the fear of picking the wrong name or corporate structure held you back? Have you ever changed your company name before? Was it a big deal?
Stuck trying to come up with a business name?
Are you ready to start your business but coming up with the name is what’s holding you back?
Check out the NEW Home Staging Business Name Handbook. I dive deeper into the concepts discussed here and much, much, more.
There are tons of examples and a proven process to follow so that you can come up with the right name for your business that will serve you well now, and in the years ahead on your journey as a home stager and decorator.
Debra,
Why did it cost so much more in taxes to file as a sole proprietor? My first year of business I only netted about $3300. This year hasn’t much profit yet either. With this low of income, does sole proprietor still make sense?
Thanks!
Jennifer
Jennifer, my first year income was over $60,000 which is why it cost me so much in taxes as a sole proprietor, that I would not have paid if I had a corporation (because tax rates are lower for corporations than individuals).
I can’t give you tax advice, because I am not an accountant (not to mention I have no idea where you are in the world and tax laws are different everywhere).
Given what you’ve said about your income year one, you need to focus on your marketing and pricing strategy as top priorities. That said, you will still want to investigate tax implications of your chosen corporate structure. For example, companies can carry forward losses so that when they make big profits in a future year, their taxable income will be reduced by that amount. Again, I’m not providing tax or legal advice, just sharing what I know from personal experience 🙂
Is forming your company as an LLC the same tax treatment as a “corporation?” I believe they are different, right?
Would you recommend doing sole proprietorship your first year only as you get your business off the ground?
Hi Dee,
I am not an accountant or a lawyer and I don’t even know where in the US you are located, so it would be irresponsible for me to give you a definitive answer. I can tell you that most of my American Staging Diva Grads form an LLC. And yes, they are different. This is a topic I delve into deeper in the Staging Diva Home Staging Business Training Program.
I love the name I chose for my business 2 1/2 years ago – Limelight Interiors – I did a title search (province of Ontario) and when the search came back “clear” (no other business in Ontario with that name) I registered the name, got a business number from Revenue Canada and I started building my brand. I hired a graphic designer, got my business cards printed etc. etc. Along the way I “googled” myself 🙂 and I was quite happy that I kept popping up at the top of the search (in my area) One day, I came across 2 other “Limelight Interiors”! And I was horrified! I thought I had done everything right! One of those “other” businesses was in the States so I wasn’t too worried; but the other one was only a 3 hr. drive from my location! Just yesterday I received a phone call from someone looking for _ _ _ _ _ _ .The name was so familiar to me that I googled it (I do a lot of googling) the name was so familiar because I had seen it before!…it was the name of another home stager with a 14 year business! Now what?! I am not willing to change my name or my logo; especially since people are finally starting to recognize it! I’m not sure what the legal implications are, but as far as I know, and to the best of my knowledge, I have followed the “rules”. I am a bit sad actually. Has this happened to anyone else?
Jackie, that’s indeed an unfortunate situation. Have you done a search to see it they actually have a registered business with your name? Look at your notes from Course 3, there’s a link in there for government information. If the other company with your name is also in Ontario, I suggest you discuss your options with a lawyer.
I’ve had my home staging business less than a year now. Initially, when I chose my business name, I did lots and lots of research (did I say lots?) and finally came up with a name I liked. I’m only a sole proprietorship at this point, as I’ve only had one paying client; I can’t justify incorporating at this time. I’ve created and bought wonderful flyers, 100’s of business cards, car magnets, etc. to market my “brand”. I’ve created one mini website, with a much bigger one in the works. But recently, I’ve had a revelation, and I think I’ve found my niche. After talking with a marketing pro, I realize that the name I chose before may not be the best name after all. I’m thinking of changing it so it’s more encompassing and it may make more sense to people I am marketing to. The problem is I don’t have a lot of money to spend, especially on all new marketing materials. I need some guidance…what should I do?
Heather, if you’ve decided you have a better name, then make the change sooner rather than later. It only gets more expensive the longer you wait, especially when you consider you have to start marketing all over again to establish and build awareness of the new name.
Do the digital stuff first, it’s cheaper than printed materials. Most people will find you online anyways.
If you are a graduate of the Staging Diva Training Program, re-listen to course 4 which is all about marketing. You’ll also find ideas in courses 2 and 5. I hope the marketing person you are working with understands the dynamics of building a successful home staging business.
Also, check out Staging Diva Dialog, my monthly small group coaching call. I’d be happy to take you through some of the intricacies of your name switch and how to best leverage whatever budget you have. You can learn more about this program at: https://stagingdiva.com/store/#dialog
Thanks for sharing your experience and best of luck with your new staging business!
Thank you so much Debra for posting this report. I was so stuck on a business name for the past 4 months that I have not done anything with my home staging business. I found it difficult to come up with a business name, domain name etc. Every time I think I would have a good name, I would check on Go Daddy for the domain name and it would be taken. So I think I have finally got two names to choose from now where I would be happy starting my business. Thank you.
Glad I could help Debbie, thanks for commenting!
Great information Debra, thank you. These are the kinds of things you wonder about and don’t always know where to find the answers. I delayed starting my business because I couldn’t decide on the right name, then later got married and my name changed so I may change my business name at some point. As far as Inc. goes, I consulted at least three attorneys on that subject as well as for tax questions. They told me sole proprietor was best if you do not have employees under you to provide health insurance/disability ins. for, and that with LLC, I would have to pay at least $800 a year tax whether I made any money or not. There are so many variables to consider! Thanks for sharing your knowledge!
You are welcome Nancy! Thank you for sharing your experiences with us.