There are many partnership business examples. One type of partnership is co-branding, which is an advertising partnership and strategic marketing that exists between two brands. The success of one company depends on the success of the other. This can be a good way to get into new markets, build more business, and increase awareness. A partnership needs to be a win-win situation for both sides in order for it to be successful.

Red Bull & GoPro

One example of a partnership business is the relationship between Red Bull and GoPro. GoPro sells more than portable cameras, while Red Bull sells more than energy drinks. They are both lifestyle brands that have similar goals. They have the following in common:

• Fearless
• Adventurous
• Extreme
• Action-packed

These make them the perfect fit to pair up for campaigns, particularly when it comes to action sports. GoPro gives adventurers and athletes the tools they need to capture their stunts, sports events, and races from the athlete’s perspective. In turn, RedBull puts on and sponsors the events.

These companies have done many projects and events together, with the biggest being “Stratos.” In this campaign, Felix Baumgartner had a GoPro strapped to him and jumped from a space pod that was 24 miles above the surface of the Earth. He set three world records but also showed the potential humans have that defines Red Bull and GoPro.

Sherwin-Williams & Pottery Barn

One of the largest advantages of doing a co-branding campaign is having the opportunity to showcase a service or product to a new audience. That’s what Sherwin-Williams and Pottery Barn did when they got together in 2013. They created an exclusive line of paints together, and then put a new section up on Pottery Barn’s website to allow customers to easily pick which paint colors they wanted so it would go with their furniture choices. This was mutually beneficial for both brands, and they wrote articles to show how customers could decorate and paint on their own.

West Elm & Casper

Casper is an online bedding and mattress store that is known for selling mattresses in a box. They have popular YouTube videos that show the mattress unboxing process and even have a 100-day return policy. However, some shoppers might not want to buy the mattress if they can’t test it for themselves first. Casper decided to partner with West Elm so people could try out the mattress in person before they bought it. West Elm was also able to show off their stylish bedroom furniture.

This was a co-branding partnership that was mutually beneficial, as both brands reached a wider group of shoppers. It also gave shoppers more options to see both what it’d be like to sleep in a bed frame and to try the mattress first.

Dr. Pepper & Bonne Belle

Bonne Belle first launched the first flavored lip balm in the world, Lip Smacker, in 1973. The original flavors included lemon, strawberry, and green apple. In 1975, they decided to partner with Dr. Pepper to create one of the most popular flavors of lip balm ever, the Dr. Pepper lip balm. They even teamed up for their new slogans to promote the lip balm.

Louis Vuitton & BMW

Louis Vuitton and BMW may seem like a strange partnership initially. However, they have several traits in common. They both promote travel, as Louis Vuitton is known for their elegant luggage lines. They both consider luxury to be important, and they’re both popular brands that are known for their high-quality products. BMW created a car named the BMW i8, and Louis Vuitton created a four-piece set of bags and suitcases that seamlessly fit into the rear parcel shelf in the BMW. This partnership showed the shared values of technological innovation, creativity, and style.

Spotify & Uber

Spotify partnered with Uber because they both had the same goal of getting more users even though they had different products. Uber riders can pick out a Spotify playlist to choose what they’ll listen to during their ride. This helps both Spotify and Uber fans have a better experience during their ride in the car.

If you need help with partnership business examples, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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What is the difference between LLC and Inc? LLC and Inc. are both business entities formed by the state. An LLC is a limited liability company, and an Inc. is a corporation. They both file organizational papers with the state, and their owners receive liability protection. These entities also differ in key areas:

• They vary in tax treatment.
• One has a more formal organizational structure than the other.
• Their ownership distribution rules differ.

What Is a Corporation

A corporation is a business transformed into its own entity, separate from its owner. Sole proprietorships and partnerships are extensions of their owners, whereas structures like a corporation can conduct transactions on its own. Corporations, like LLCs, are business entities that exist outside their owners. Corporate owners are called shareholders.

Corporation Characteristics

Corporate owners are called shareholders. There are two types of corporations: A C corporation (C corp) and an S corporation (S corp). A C corporation is also known as a standard corporation. C corporations are subject to double taxation. A corporation can avoid double taxation through an S status election. However, there are other restrictions when a corporation elects an S status.

What Is a Limited Liability Company

A limited liability company (LLC) gives its members flexibility and protection. An LLC provides its owners, called members, limited liability protection while eliminating the double taxation burdens of a corporation. The LLC entity passes through the business structure to the members.

Limited Liabilities Company Benefits

An LLC has four significant benefits:

1. Members receive liability protection through an LLC.
2. Members are not subject to double taxation.
3. Members have flexibility in management.

The LLC’s limited liability feature protects members’ assets should the business face a lawsuit. If the LLC is sued, the members’ assets are protected from seizure to pay off the LLC’s debt. Sole proprietorships and partnerships do not protect their owners from personal liability in a suit.

Furthermore, LLCs benefit from pass-through taxation. Profit and losses pass through the LLC to its members. The members will include the gains and losses on their tax returns.

Lastly, an LLC management structure is flexible. LLC members can decide whether they will manage the business or appointment a manager. If the LLC is member-managed, then all the members take part in running the day-to-day business operation. With a manager-managed LLC, not all members participate in managing the business operations.

LLC and Inc. Similarities

LLCs and corporations have several things in common:

• They both must operate in the state they were formed.
• They are both governed by the state they were formed in.
• They both offer liability protection to their owners (corporate shareholders and LLC members).

LLC vs. Corporation Other Key Differences

There are differences between an LLC and a corporation regarding formation, ownership, and taxation:

• Formation. One or more owners (called members) form an LLC. They file articles of corporation with the state. The articles of corporation document forms the LLC. Although the operating agreement is not required, it is highly recommended to create one. The operating agreement outlines the management, the ownership, the role that the members play, and other essential business functions. On the other hand, a corporate formation is more structured. Along with filing organizational papers with the state, a corporation must designate shareholders, create a board of directors to oversee business management, and have at least one formal meeting each year.
• Ownership. Each member in an LLC owns a certain percentage of the business known as “membership interest.” An LLC can distribute membership however it wants; however, it is hard to transfer member interest. Corporate entities issue shares to their shareholders. Shareholders can easily transfer their shares.
• Taxation. LLCs have a different tax treatment than a corporation. Single member LLCs are taxed like a sole proprietorship while multi-member LLCs get the same taxation treatment as a partnership. On the other hand, a shareholder is subject to double taxation — on an individual level (payroll tax) and corporate level (dividend distribution).

LLCs and corporations are structures that exist for distinct reasons. Knowing your needs (for instance, whether you need outside investors or a flexible management structure) will help you form the structure that fits your business requirements.

If you need help with selecting between an LLC or an Inc. business structure, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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Changing a business name with the IRS can be done in one of two ways. Corporations and LLCs can check the name change box while filing their annual tax return with the Internal Revenue Service (IRS). You can notify the IRS through a name-change letter if the change needs to be quicker or if you’ve never filed an IRS return for the business.

Updating Your Business Name With The IRS

If you need to change your business name, doing so is a straightforward process. 

Before filing the name change with the IRS, legal business entities like corporations or LLCs, though not single member LLCs, also called sole proprietorships, because those are a pass through entity, must amend their business formation documents and file them with the state where the business is registered. 

Doing this will update the records of the secretary of state or other state agency responsible for regulating corporate affairs. However, once this is done your business name linked to your Employer Identification Number (EIN), which is issued on the Federal level, has not changed in the Internal Revenue Service’s (IRS) records.

To change your business name involves a few more steps, and should only be done once you have changed your business name with your state.

Business Name Change vs DBA

Before filing a name change with your state and the IRS and informing your bank, creditors, and others about the change, you should first make sure that you don’t just need a simple Doing Business As (DBA) filing.

Every registered company has both a legal name and a trade name. The legal name may be something like “Awesome Business LLC,” but that entity then owns a brand called “Red Shoes.” Awesome Business LLC may be confusing to customers, so by filing a DBA the company can sign receipts and invoices as “Awesome Business LLC dba Red Shoes.”

Here is how to decide whether you need a business name change or to simply file a DBA:

• If you are changing your whole business and your old name no longer applies, changing the business name is a clean option.
• If you’ve rebranded your product but the old business name still applies, filing a DBA may make the most sense.

Assuming you’ve decided that changing your business name is the right move, here are the steps to do so with the IRS.

Steps Involved in Changing Your Business Name With The IRS

• Find and research a new name, ensuring it will not infringe on any trademarks.
• Notify your Secretary of State regarding the name change.
• Get the name changed in your licenses and permits.
• Inform the IRS about the name change. In some cases, you may be required to obtain a new EIN.
• Update the new name in your business documents.
• Communicate the name change to your bankers, vendors, customers, and all other concerned parties.

Updating Your Business Name Change With the IRS

If you need to change your company’s name, you must make sure that the IRS, your state, and other concerned parties such as your bank know about it. Usually, changing your business name does not require you to obtain a new Employer Identification Number (EIN). However, you must update the name on your EIN documentation.

There is an easy way to update your business name in the IRS records. C-corporations, S-corporations, and multi-member LLCs that have filed at least one tax return can notify the IRS of the name change by simply checking the name change box while filing your tax return for the current year. You need not mention the old name in the return.

Note that this option is not available to single-member LLCs.

There are other times when you need to change your business name immediately after receiving your EIN. If you need to make a name change before filing a tax return with the IRS, you should send your request to the Cincinnati, Ohio, office of the IRS located at 550 Main St # 10, Cincinnati, OH 45202.

If you are sending a letter You should also submit a copy of the Certificate of Amendment filed with the state where the business was originally formed alongside the name-change letter to the IRS. When properly done, this will update your new name in the IRS records.

Once your new business name is updated with the IRS, you should inform everyone else about your company’s name change. 

You may want to prepare a list of your vendors, bankers, creditors, and other agencies that should be notified about the name change.

Contents of the Name Change Letter

The IRS website does not specify what you should include in the name-change letter, but the omission of essential details can result in the IRS rejecting to update its records. 

To be safe, you should include the following details in the letter:

• Your current EIN
• The old name of the business as mentioned in the IRS records
• Complete address of the business as it exists in the IRS records
• The new name of your business
• Date from which the name has been changed
• New address if applicable

The owner or an authorized officer of the business as per IRS records must sign the letter. It should be accompanied by a state document approving the name change of your business. The name-change letter should clearly state that your business name has changed. Also, don’t forget to request for a confirmation from the IRS regarding the updating of the new name in its record.

The IRS takes about six weeks on average to process a name change letter. If you fail to provide the necessary details in your letter, the IRS may request additional information, which may further delay the processing.

How To Change An EIN Number

Usually, when simply changing your business’s name, you will not be required to change the EIN as long as the ownership or business structure has not changed as well.

Other changes that often come with a business name change, such as change of ownership, bringing on partners, incorporation, you become a subsidiary of a bigger company, or changing the business classification at all such as from a Corporation to an LLC will require an EIN change.

A full list of times you need to change your EIN along with a business change can be found here on the IRS’s website.

If your business meets the requirements for changing the EIN, you must both apply for a new EIN and cancel the account for the existing one.

EINs are unique to the business for which they were issued, and a canceled number will never be reused for another business.

To apply for a new EIN, go here and follow the steps required.

To cancel an EIN, write to the IRS at “Internal Revenue Service, Cincinnati, Ohio 45999” and give the reason for why you want to close the account. Be sure to include the complete legal name of your business, the EIN, and the business address. 

LLC Name Change

A limited liability company (LLC) is a kind of business organization, which blends the flexibility and pass-through taxation benefits of a partnership with the liability protection of a corporation. LLCs are not recognized by the IRS for reasons of federal taxation. Instead, LLCs are categorized as corporations, partnerships, or sole proprietorships. If your LLC effected a name change, reporting the name change to the IRS only takes a statement on your LLC’s annual tax return.

Corporation Name Change

If your organization changed its name because it was converted from a corporation to a limited liability company, it needs a new EIN. To request a new EIN, send an application through the IRS’s online EIN assistant. As a corporation, you can file an annual Form 1120 by checking “Name Change” on page 1, line E.

Form 1120 is for the U.S. Corporation Income Tax Return, which requires companies to annually file their debts and income. When supplying the organization’s new name under section A of the form, including the old name of the company won’t be necessary because an officer of the company must sign the form.

S Corporation Name Change

An S corporation can file Form 1120S by checking “Name Change” on page 1, and adding its company’s new name under section A. Again, it won’t be necessary to include the company’s old name because an officer of the company must sign the form.

Partnership Name Change

A partnership can file Form 1065 by checking “Name Change” on page 1, line G. It also needs to add only the new name of the company as an officer of the company must sign the form.

Sole Proprietorship Name Change

A sole proprietorship can file by writing to notify the IRS of its company’s name change, and mail the document to the IRS address where it files its annual tax return. That’s because the IRS doesn’t have a formal notification form for sole proprietorships filing for a change of name. However, an officer of the company must sign the document of notification (the letter) before sending it to the IRS.

LLC’s Certificate of Amendment

Even if you’ve already filed a tax return for the present year, you can still file for your company’s change of name without waiting for next year. To change the name of your LLC, you need to file a certificate of amendment with the original home state or country of your company. When filing for a change of company name with the IRS, you have to send a copy of the certificate of amendment with a letter to the IRS address where you filed your annual return, to inform the IRS of the name change.

You Need to Inform Others

The moment you’ve changed your company’s name with the IRS, you’ll have to inform everyone else about your company’s name change as well. It’s not a bad idea to compile a list of all other agencies and organizations your company regularly transacts with. Some of them are as follows:

• Every state and local tax agency
• Suppliers
• Vendors
• Banks
• Companies

Need Help With An IRS Business Name Change?

If you need help with an IRS change of business name, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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