Yes, a partnership may use another name as its DBA (Doing Business As). A DBA name is a made-up name that companies use to conduct business under a name other than their official one. In a partnership, the names of the partners who own the company are used as the legal name. To avoid confusion among clients or for branding reasons, the partners could decide to operate the company under a different name.
The partners must submit a fake name registration to the state or county where the company conducts business in order to register a DBA name for a partnership. Typically, registering requires completing a form and paying a fee. A notification about the new DBA name must be published in a local newspaper as part of the registration process in some states.
It is crucial to understand that registering a DBA name does not establish the partnership as a different legal entity. Although the partnership can continue to function under the DBA name, it is still the same legal company. The partners must continue to file partnership tax returns and bear personal responsibility for the debts and obligations of the company.
If you run a business as a lone proprietor, you are exempt from state registration requirements. However, the local government may require you to seek a business license or permit. Depending on where you are doing business and what kind of firm you are running, different licenses and permits have different criteria.
The fact that you must still obtain any essential permissions or licenses for the commercial operations you engage in, even though you are not required to register your firm with the state, is also significant to note. For instance, the local health department may require you to seek a health permit if you run a food truck. What Taxes Are Paid by Sole Proprietors?
You must pay self-employment taxes, which include Social Security and Medicare taxes, if you are a lone owner. Additionally, you must submit a yearly tax return to the IRS using Schedule C to list your business’s revenue and outgoings.
Additionally, you might need to pay state and local taxes, such income tax or a sales tax, depending on where you live and where you run your business. To make sure you are meeting all of your tax duties for your business, it is crucial to speak with a tax expert or accountant.