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Ask HN: Should I officially change my company name with Delaware?

1 points by bananaFund ↗ HN
First time founder. Won some school grant to form legal entities, and use for other operations expenses, but it's limited. I ended up forming a Delaware C Corp as I heard most of people who try to raise VC money do that.

The question is we pivoted our product to a totally different area, so we also decided to change name of the company as well. I'm looking into the process and cost to change name with Delaware, seems very complicated and costly -- hundreds of dollars. (We feel other areas need this money more than changing names.)

We're trying to raise a round of VC money next month. If it goes ok, I assume we will receive check to our company. Should I spend money to it now or it's totally fine to officially change the name after we have enough money?

Thanks for all you guys help!

6 comments

[ 2.6 ms ] story [ 24.9 ms ] thread
hn2022hn2022
Create a DBA for the new name under the current Corp
bananaFund
Do investors write check or wire money to the company name or founders’ names?
eszed
Company name. That's why you form a company: to separate you from the company, and limit your financial liability.

Once you've filed your DBA, and have the paperwork in-hand, go talk to the bank that holds your corporate bank account (you do have a corporate bank account, right? See above). I don't know their exact process, but they will attach the DBA name to the corporate bank account, so that you can receive funds to it under that name.

bananaFund
Thanks! Another question: do investors care about the legal entity's name? Creating a DBA seems only allow you to put [Old Name, Inc.] DBA [New Name], for which old name will still be on it.
eszed
This is beyond my experience. At some point I expect they'll find out the old name, but the only time I know you'll be obliged to include the corporate name will be on a contract, and if they've got to the point of signing a contract with you, then I doubt it'll be an issue. However, someone else will be able to give you a more certain answer than I can.

I don't know why you're so concerned about your corporate name, but if it's something really weird, or something totally antithetical to the product you're selling, you might rehearse a clever and self-deprecating answer. Maybe even something as simple as, "yeah, we pivoted. Obviously", in the right tone of voice, will dispel questions.

bananaFund
Also I file DBA in Delaware or California, the state I live?