The simplest and most typical type of business ownership is a sole proprietorship. It is a particular kind of business that is owned and operated by a single person and is not a different legal entity from the person. There are a few things you should be aware of if you plan to launch a sole proprietorship.
In the first place, you must register your company with the local authorities. This include acquiring the required licenses, permits, and zoning permissions. If your state has any particular requirements for registering a sole proprietorship, you should inquire about them.
You might wish to think about applying for a “Doing Business As” (DBA) name. This enables you to conduct business under a name other than your given name. For instance, if your name is John Smith and you wish to run a company under the name “John’s Landscaping,” you would apply for a DBA. Your first and last name should be written in the legal name field of a DBA, then the words “doing business as” and the name of your company. As an illustration, “John Smith doing business as John’s Landscaping.”
It is significant to remember that no two companies may share the same DBA name. Customers’ uncertainty is avoided, and each company’s identity is protected. You will need to select an alternative name if you discover that the DBA name you desire is already in use.
Many one-person enterprises opt to run their operations online via a website. While a DBA is not always necessary for websites, it can be useful for branding. You might want to think about registering for a DBA if you decide to use a name other than your legal name for your website.
And finally, you might be considering whether each DBA requires a different bank account. Yes, it is the answer. Having a different bank account for each DBA will help you maintain the necessary separation between your personal and business finances.
In conclusion, setting up a sole proprietorship is not difficult, but there are a few things you should think about. It’s crucial to register your firm, get any essential licenses or certifications, and file a DBA application. You can position your company for success by being aware of the prerequisites for a sole proprietorship.
If you want to safeguard your company name and stop others from using it, you can trademark your DBA. The United States Patent and Trademark Office (USPTO) does not grant DBA registration holders the same level of protection as it does for trademark registration holders. You must show that your company name or logo is distinctive and that it is being used in commerce in order to secure a trademark.