If you intend to operate a sole proprietorship in Michigan, you might be wondering whether you need to register your company with the government. The short answer is no, sole proprietorships are not required to be registered in Michigan. Contrary to partnerships and corporations, sole proprietorships are exempt from state registration requirements.
Even though sole proprietorships are exempt from Michigan’s registration requirements, depending on the type of your business, you might still need to apply for certain licenses, permits, or registrations. For instance, the Michigan Liquor Control Commission will require that you seek a license if you intend to sell alcohol or tobacco products. Businesses may also need to get a license or permission from some towns and counties.
Additionally, “DBA” refers to “doing business as.” A DBA is a name used by a company that isn’t the same as its legal name. To utilize the business name, for instance, if your legal name is John Smith and you run a sole proprietorship called “John’s Auto Repair,” you would need to file a DBA. The county clerk’s office in the county where your business is located is where you can file a DBA.
It’s also critical to remember that a DBA does not establish a distinct legal organization and offers the business owner no legal protection. A DBA is only a mechanism for companies to conduct business under a name other than their legal identity.
A DBA may really have more than one owner. The number of owners a company may have is not constrained by the DBA because it is not a separate legal entity. It is crucial to remember that each business owner will be held individually responsible for any debts or legal problems that develop.
A DBA is also referred to as a filing under a false name. It is a legal document that permits a company to conduct business using a name other than its official name. Businesses that want to use a name that is not their legal name must file a fake name. To make sure your company is running lawfully and to prevent any future legal complications, it’s crucial to file a fictitious name.
Sole proprietorships are exempt from Michigan’s business registration requirements, but depending on the nature of your enterprise, you might still need to apply for certain licenses, permits, or registrations. Additionally, you must submit a DBA or fictitious name filing if you want to conduct business using a name other than your legal name. As usual, it’s advised to speak with an attorney or accountant to be sure you are adhering to all legal requirements for your company.
You can register a business name even if you don’t plan to utilize it right away. This is referred to as reserving a domain name. When you reserve a business name, you have the sole right to use it for a predetermined amount of time, which varies by state and is often between 60 and 120 days. This can be helpful if you’re beginning a business but haven’t decided on all the specifics yet or if you want to make sure a specific name will still be available for use in the future. You might need to re-register the name if you don’t utilize it within the allotted time frame, or you run the risk of losing your exclusive rights to it.