In theory, anyone who has a name that is not in use already can file a DBA using that name. This implies that if you haven’t registered your business name as a DBA, someone else may do so and utilize it. But if you’ve previously registered your business name as a DBA, state law will safeguard it. Therefore, nobody else may use that name for their company without your consent.
Trademarking your DBA is one approach to protect it. This increases your legal protection and makes it simpler to sue anyone who attempts to use your DBA without your authorization. However, the process of trademarking your DBA can be expensive and time-consuming.
The IRS issues each business an individual nine-digit number known as an EIN (Employer Identification Number) for the purpose of taxation. There is no need to obtain a new EIN if your company name changes. Utilizing Form SS-4, you may easily inform the IRS of the name change.
Having two EIN numbers for the same business is not advised. Confusion can result from this, which could result in mistakes while filing taxes. If you unintentionally submit an application for a second EIN number, get in touch with the IRS to have it combined with your first EIN number. How Do You Make Money from an LLC to Pay Yourself?
You have a few options for paying yourself as the proprietor of an LLC. One choice is to work for the LLC and accept a pay. Taking distributions from the LLC’s earnings is an additional choice. It is significant to remember that while distributions are not subject to payroll taxes, they might be. What is Better LLC or Sole Proprietorship, furthermore?
Your business’s requirements and objectives will determine whether you choose an LLC or a single proprietorship. Although it is easier and less expensive to set up a sole proprietorship, it does not offer the same amount of legal protection as an LLC. With limited liability protection offered by an LLC, your personal assets are safeguarded in the event that your company is sued.
In conclusion, although if it is possible for someone to steal your DBA if you haven’t registered it, if you have, it is legally protected. Even greater legal protection may be available if your DBA is trademarked. If your company name changes, you can use Form SS-4 to notify the IRS without having to obtain a new EIN. Having two EIN numbers for the same business is not advised. You can pay yourself as the owner of an LLC through a salary or distributions. Your business’s requirements and objectives will determine whether you choose an LLC or a single proprietorship.