It is not necessary by law in Washington State to register a sole proprietorship. However, it is strongly advised that you register your DBA name with the Washington Secretary of State’s office. By doing this, you will be granted exclusive rights to use the name in the state and stop others from doing the same for their company. By registering your DBA name, you obtain legal security and the ability to sue anyone who attempts to use your name without your consent.
You must pay many taxes in Washington State as a sole proprietor, including the business and occupation tax, the sales tax, and the federal self-employment tax. A gross receipts tax known as the “business and occupation tax” is imposed on the price of goods, the gross proceeds from sales, or the gross revenue of the enterprise. Retail sales of tangible personal property and some services are subject to sales tax. Your net self-employment income is used to compute your federal self-employment tax.
In Washington State, a business entity that is solely owned and run by one person is known as a sole proprietorship. It is the simplest and most popular type of corporate organization. All debts and responsibilities of the business are personally owed by the owner. This implies that if the company experiences financial difficulties, the owner’s personal assets could be at stake.
It’s crucial to write your legal name exactly as it appears on your government-issued identification while filling out the DBA form. Your first and last name, middle initial, and suffix (if any) are included in this. Using a different name or typing your name incorrectly can cause legal issues and slow down the registration process. It’s also crucial to confirm that no other company in Washington State is already using the DBA name you’ve chosen.
In conclusion, if you haven’t registered your DBA name with the Washington Secretary of State’s office, someone else might do so. Your DBA name is protected legally and you have the sole right to use it in the state if you register it. You must pay many taxes as a single proprietor in Washington State, and you may want to think about registering your firm to reduce your personal obligation. To prevent legal issues, use your legal name exactly as it appears on your government-issued identification when submitting your DBA application.