Does changing your business name affect your business credit?

When you choose a business name, you hope it’s one you’re going to stick with forever. But you may find you need to change your business name for any number of reasons: 

• Customers can’t say, spell, or remember your current name.
• Your business is often confused with another business with a similar name.
• You want to expand to new states (or countries) where your name is already in use by another company.
• There is a trademark challenge to your current name.
• You change your product or service focus and you want something that better identifies your focus.
• You form a business entity (sole proprietorship, LLC, or corporation) and legal requirements force you to pick a different name.

Changing your business name may feel like a fresh start, but you want to consider the potential impact to your business credit. Learn more in this guide.  

Warning: Changing a business name can get complicated. Consult with your tax professional, attorney and other advisors to make sure you navigate the process correctly. Nav does not offer legal, tax, or financial advice. 

Why an older name is better for business credit

Just as customers may respond well to a sign on the door (or website) of a business that says it was established years ago, lenders often view longevity as a plus. They often see it as a sign of stability and lower risk. 

While every credit scoring model is unique, especially when it comes to business credit, credit scoring models look at factors including:

• Age of the business: How long your business has operated.
• Time in file: When your first credit account was opened.
• Average age of accounts: The typical length of all accounts on file.

Older accounts can demonstrate more payment history, and a record of on-time payments is essential to good credit. 

If you change your business name and records aren’t properly updated, data may become disconnected and fail to get reported under the new name. 

And certain name changes will result in the need to establish a new business credit file for your business as Experian warns on its website:

"If a business changes its name and tax ID, its credit history will not follow because a new business has been formed. The old credit history will stay with the old business, and the new business with the separate tax ID will build its own credit history."

You may be able to change your business name without getting a new tax ID or Employer Identification Number (EIN). But there are times when doing both is unavoidable. 

For example, forming a business entity, or going from a sole proprietorship to an LLC or corporation, will likely require a new tax ID. 

The IRS advises that “generally, businesses need a new EIN when their ownership or structure has changed.” 

Understand that a name change that also includes a change in EIN could result in having to start over again building business credit. 

Steps to take when changing your business name without risking your business credit

Again, changing your business name and tax ID may mean you need to reestablish business credit. There may be valid reasons for doing that, and those reasons may easily override any desire to protect your existing business credit history. 

If you do not need to change your tax ID, however, you may be able to maintain your current credit history under the new name. However, this is not automatic — you’ll need to monitor your reports to ensure records remain connected.

Another possible strategy, if you aren’t forming a new LLC or corporation, is to keep your current business name, then file and use a fictitious name (doing business as or DBA) with your new business name. 

To change your business name, start with these essential steps:

1. Notify the IRS

Visit the IRS business name change page for guidance on business name changes. Depending on your business structure and tax election, you may need to submit an official notice or amendment.

1. Update state and local agencies

If you registered your business with a state or local authority, such as a Secretary of State, Department of Corporations or local business licensing office, update your registration promptly. This ensures public records match your credit and banking information.

1. Notify your creditors

Inform banks, vendors, credit card companies, and payment processors about your new name. Their reports to credit bureaus must reflect the updated name tied to your same tax ID and accounts.

1. Notify the credit bureaus

Each commercial credit bureau handles business name changes differently:

• Dun & Bradstreet (D&B): You may need to update your information through D&B’s company update page. Keep in mind that not all submitted data is guaranteed to appear in your D&B credit file.
• Experian: Visit BusinessCreditFacts.com to update your business name and verify your credit file.
• Equifax: No direct update is required as long as your business uses the same credit accounts and tax ID. Your report will typically reflect both old and new names.
• LexisNexis: Does not require notification for a name change. Their data systems automatically connect related records.

Monitoring your business credit reports

Check your business credit reports before and after the name change. Confirm that your accounts, payment histories, and credit lines are correctly reported under the new name. If discrepancies appear, contact your creditors and request corrections to preserve your complete history.

Note that all trade data is guaranteed to be included in your business credit files, including D&B credit files, even if submitted.

Legal considerations

Changing a business name also carries legal responsibilities. Depending on your entity type and state, you may need to:

• File a name amendment with your Secretary of State or equivalent authority.
• Update your “Doing Business As” (DBA) registration if you will operate under a trade name.
• Revise operating agreements, incorporation documents, or partnership filings.
• Update licenses, permits, and insurance policies.
• Update contracts and other legal documents. 

For corporations or LLCs, the name change must be reflected in official entity records to remain compliant and avoid confusion in contracts or tax filings.

Some business owners use a fictitious name (DBA) to help navigate a name change. For example, let’s say your current business name is Ellen’s Excellent Espresso and you change it to Excellent Espresso Exports LLC. You may be able to file a fictitious name for your new LLC to help continue a connection with the old name. (Keep in mind the new LLC may still need to build business credit since the company has a new name and must get a new EIN for the new LLC.) Consult with a legal advisor to find out if this may work for your situation. 

For more details on how to navigate a business name change, read Nav’s ultimate guide to changing your business name.

Top mistakes to avoid during a business name change

If you’ve ever changed your name after a marriage or divorce, then you know it can be a hassle. The same is true of business credit. 

Here are some mistakes you’ll want to avoid: 

• Not thoroughly researching the new business name to make sure it is legally available, and that it won’t easily be confused with another business. You don’t want to have to change it a second time. 
• Failing to notify all creditors, vendors, and payment processors of your new name. 
• Forgetting to verify that your credit reports show both the old and new business names.
• Using a new tax ID number when not required, which can create an entirely new credit profile.
• Not updating state or federal records, leading to mismatched legal documentation.
• Assuming the change will update automatically across all agencies — manual verification is often required.
• Not keeping good records of the steps you’ve taken. 

There are plenty of potential repercussions to changing your business name. Some business owners report that they have had trouble changing their business name on their Google Business Profile, App Store developer account, or other key business accounts. 

Frequently asked questions

How long does it take credit bureaus to update records after a name change?

After a business name change it can take from 30 to 60 days for changes to appear on your records once your creditors start reporting under the new name.

What happens if I change my business name but forget to notify creditors?

If you change your business name but don’t notify creditors, those bureaus may continue reporting under your old name, leading to incomplete or split credit files.

How many times can I change my business name?

You can change your name as often as state laws allow, but frequent changes may confuse lenders or make your business appear risky.

What’s the difference between a DBA and changing my legal business entity name?

A DBA lets you operate under a different name without altering your legal entity. Changing your legal name requires formal filings with state and federal agencies.

Will changing my business name affect my personal credit?

No, changing your business name will not affect your personal credit. Personal and business credit are separate unless you personally guarantee a loan or credit card.

How much does it cost to officially change a business name with state agencies?

Costs to change your business’s name with state agencies will vary by state but typically range from $20 to $150, depending on filing fees and entity type.

Can I use both my old and new business names during a transition period?

Businesses sometimes operate under both the old and new names temporarily. Be sure to check legal requirements first before employing this approach. 

What should I do if my credit report shows both old and new business names?

It’s normal for your credit report to show both the old and new business names during a transition. Review your credit reports regularly to confirm accounts and payment histories remain connected, and reach out to your creditors or the credit bureaus if they don’t update within a few months.