A name for your company is a key choice that greatly affects the identity and success of your brand. But what if you wish to carry on business under several names? Can a company have two names? Yes, it is the answer. As long as each name is legitimate and registered, a company may function under more than one name.
A company may operate under more than one name, but each name needs to be registered. The name that appears on all legal papers, including contracts, licenses, and tax forms, is known as the legal name. For instance, if you initially establish your company as “ABC Corporation” and subsequently decide to operate under the name “XYZ,” you must file a “doing business as” (DBA) name application with your state government using the name “XYZ.”
You can experience legal repercussions for using an unregistered name, including fines, lawsuits, and the inability to open a bank account or get a business license. Furthermore, if customers cannot confirm your legal identity and status, it may be difficult for them to trust your company.
You might ask whether you need to update your DBA with the IRS if you conduct business under several names. The good news is that the IRS doesn’t need you to amend your DBA. Your legal name, EIN (employer identification number), and business entity type—sole proprietorship, partnership, LLC, or corporation—are all recognized by the IRS.
However, you must notify the IRS if you alter your legal name by amending Form SS-4 (Application for Employer Identification Number) or by calling the IRS Business and Specialty Tax Line at 800-829-4933.
A DBA is not regarded as a distinct legal entity from your company. Instead, it is the name under which your company conducts business. A DBA is also referred to as a trade name, assumed name, or fictional name. It permits you to conduct business under a name other than your legal name.
For instance, if you run a sole proprietorship called “John Smith Consulting,” you can file a DBA as “Smith Consulting Services” to grow your company and prevent customers from being confused with other companies with the same name. A DBA is merely a technique to run your business under several identities; it offers neither legal protection nor tax advantages.
In a partnership, two or more persons jointly own the business and participate in the obligations and profits. Four different kinds of partnerships exist:
1. General Partnership: In this type of partnership, each partner is equally liable for the obligations and liabilities of the company. Each partner has the power to govern the firm and make choices.
2. Limited Partnership: There are two different kinds of partners in a limited partnership: general partners and limited partners. While limited partners contribute capital but do not control the company and have limited responsibility, general partners manage the company and have unlimited liability.
3. Limited Liability Partnership (LLP): An LLP is a kind of partnership in which each member is only partially responsible for the debts and liabilities of the company. Each partner is alone accountable for their own conduct; they are not held accountable for the wrongdoing of their fellow partners. Joint Venture: A joint venture is a cooperation between two or more businesses or people to complete a certain project or achieve a particular objective. Resources are contributed by each partner, and they split profits and losses. Taking this into Account, What Qualifies as a Partnership?
In a partnership, two or more persons jointly own the business and participate in the obligations and profits. A partnership does not pay taxes and is not a distinct legal entity from its owners. Instead, the partners receive a pass-through of the partnership’s profits and losses, which they then declare on their own tax returns.
A verbal or written agreement can create a partnership, and it should specify things like the partners’ contributions, profit sharing, decision-making, and exit alternatives. Partnerships can be a flexible and economical method to launch and expand a business, but they also call for open communication, common objectives, and trust between partners.
So long as each name is legitimate and registered, a business can function under many identities. A DBA is a means to run a business under several identities; it is not regarded as an entity. There are four different forms of partnerships: general partnerships, limited partnerships, limited liability partnerships, and joint ventures. A partnership is a business structure where two or more persons share ownership, earnings, and responsibilities. To determine which course of action is best for your company, it is crucial to think through the legal and tax repercussions of doing business under various names or creating a partnership and to speak with an attorney or accountant.
In the majority of nations, partnerships must be registered with the appropriate government body in charge of business registrations. Partners must normally file a registration form and pay the necessary fees, though the criteria for registration may change according on the jurisdiction. Partners may also be asked to submit additional paperwork, such as a partnership agreement and individual partner identification documents. A local government agency should always be contacted to confirm that the registration requirements are being followed.