You might be asking if you require an Employer Identification Number (EIN) if you are a sole proprietor. The short answer is that you do not require an EIN if you are a sole proprietor, although there are some circumstances in which having one can be advantageous.
An EIN is a nine-digit number issued for tax reasons by the Internal Revenue Service (IRS). It functions as your company’s equivalent of a social security number. Although it’s not necessary for sole proprietors to get an EIN, it’s a good idea if you intend to recruit staff, open a business bank account, or apply for specific business permits.
Use your social security number for tax purposes only if you don’t intend to hire staff or register a company bank account. Even if you don’t intend to recruit staff, getting an EIN is a good idea if you want to keep your personal and business income separate.
In Maryland, filing a trade name is the same as filing a business name. In Maryland, registering a trade name costs $25. Your trade name can be registered online or by mail. It’s crucial to understand that registering a trade name does not give your company name any legal protection. You must register a trademark if you want legal protection.
In Maryland, how do I register a business name? You must go to the Maryland Department of Assessments and Taxation website in order to register a trade name there. From there, you may either download the paper application to mail in or register your trade name online. You must pay the $25 charge and supply some basic information about your company, such as your name and address.
Doing business as (DBA) is a trade name that a company employs to conduct business under a name other than its legal name. If your legal name is John Smith and you wish to run your business under the name “Smith Consulting,” for instance, you would need to file a DBA.
An LLC (Limited liabilities Company) is a type of business entity that shields its owners from liabilities. Because it is a different legal entity from its owners, they are not personally responsible for the obligations and liabilities of the business. Additionally, an LLC can offer flexibility in management and tax advantages.
Doing Business As, or DBA, is a trade name that a company employs to conduct business under a name other than its legal name. A business can operate under a different name without creating a different legal entity, like an LLC or corporation, by registering a DBA. DBAs are frequently employed by partnerships and sole proprietorships to give their company a more respectable-sounding moniker.
A trade name, commonly referred to as a “doing business as” (DBA) name), is the name used by a corporation, partnership, or sole proprietor to conduct business in Maryland and differs from the name by which the owner or owners are legally known. In order to lawfully use a trade name and to keep yourself out of trouble with the law, you should register it in Maryland.