If you are conducting business under your own name, you are not often needed to file for a DBA. For instance, you do not need to submit a DBA if your name is John Smith and you are operating a landscaping company under the name John Smith Landscaping. However, you would have to submit a DBA application if you wanted to do business as Green Thumb Landscaping.
If you’re launching a business, you might also be debating between creating an LLC and a S Corporation. Both of these business forms provide pass-through taxation and liability protection, but there are certain distinctions to take into account.
A simpler and more adaptable corporate structure that is perfect for small firms is the LLC (Limited Liability Company). It provides members with liability protection and enables pass-through taxes, which means that business profits and losses are reflected on members’ personal tax returns.
Larger enterprises should use the more complicated S Corporation corporate structure. It also permits pass-through taxation and provides liability protection for the owners (shareholders). A board of directors and regular meetings are two additional needs for a S Corporation, for example.
Can I Trademark My DBA as a result? If you want to safeguard your company name and stop others from using it, you can trademark your DBA. You can boost brand recognition and the value of your company by trademarking your DBA.
You must submit a trademark application to the United States Patent and Trademark Office (USPTO) in order to register your DBA as a trademark. You may want to speak with a trademark lawyer for guidance because this can be a difficult and time-consuming process.
A DBA does not submit a different tax return. As a sole owner, you must use Schedule C (Form 1040) to list your business’s revenue and outgoings. You will therefore just need to file a single tax return that includes both your personal and corporate income.
Consider your requirement for liability protection, the complexity of your firm, and your tax circumstances when choosing between an LLC and a sole proprietorship.
The simplest and most typical business structure is a sole proprietorship. You are liable for all debts and liabilities incurred by the firm, as it provides no liability protection. A sole proprietorship, on the other hand, is simple to establish and keep up, and there are no additional taxes or costs.
Due to the liability protection provided by an LLC, your personal assets are kept apart from those of your business. Additionally, it provides pass-through taxes, which means that business income and losses are reflected on the tax returns of the owners. However, compared to a sole proprietorship, an LLC is more complicated and necessitates more paperwork and costs.
In conclusion, the specifics of your business name and the legislation in your state will determine whether or not you need a DBA for your single proprietorship. Consider the degree of liability protection you require, the complexity of your firm, and your tax circumstances when choosing between an LLC and a sole proprietorship. Last but not least, think about working with a trademark lawyer if you want to trademark your DBA or handle the trademark application procedure.