As a business owner, you can decide that you would prefer to use a name other than the one you registered with the government for your company. This distinct name is referred to as a trading name, and it may not be the same as your company name. If your company is registered as “John Smith Plumbing,” for instance, your trading name may be “Smith Plumbing Services.” However, is it acceptable to use a trading name that is distinct from your company name?
The short answer is that it is permissible to use a trading name other than your legally registered business name. A “doing business as” (DBA) name is what this is. It is a mechanism for companies to conduct business under a name other than their legal name even if it is not a legal organization. But if you wish to use a DBA name, there are some guidelines you need to go by.
Your DBA name must first be registered with your state’s government. Depending on where you live, this procedure varies, but in most states registering your DBA name entails submitting a form and paying a fee. After registering your DBA name, you can use it on all business documents, such as contracts, invoices, and promotional materials.
Using a DBA name does not provide you with any legal protection, which is another crucial point to remember. If someone person is already using the same name, they might be able to sue you. To make sure your DBA name is not already in use, you need do a comprehensive search to prevent this.
Can a sole proprietor utilize a checking account on their own behalf?
Yes, a lone proprietor may conduct business using a personal bank account. To keep personal and business finances distinct, it is advised to open a separate corporate bank account. This greatly simplifies keeping records and filing taxes. Which is preferable, a single proprietorship or an LLC?
Depending on your particular business demands, the answer to this question will vary. Although a sole proprietorship is simpler and easier to set up, it does not provide protection from personal liability. The personal liability protection provided by an LLC, however, comes with additional paperwork and setup costs. A legal or financial expert can help you choose the right business structure for your circumstances. What paperwork is needed for a sole proprietorship?
Depending on where you live, the particular paperwork needed to register as a sole proprietorship may vary, but generally speaking, you’ll need to file a business registration form and receive any appropriate licenses and permissions. Additionally, you might have to register for taxes and get a tax ID number.
A trust may utilize a fake business name, but just like any other business entity, it must register the name with the state government. The trust’s trustee would be in charge of filing the fictitious name and adhering to all applicable rules and laws.
You must first determine whether your selected name is already in use in your state before you can create a DBA (Doing Business As) name. You can do this by using a relevant agency’s or your state’s secretary of state’s database search. Following your confirmation that the name is available, you must register it with the same organization and make any required payments. Depending on your state and the type of company entity you have (sole proprietorship, LLC, etc.), the precise criteria and fees may change. Following registration, you will be able to conduct business under your DBA name on your website, in your advertisements, and on your bank account.