DBA stands for “doing business as,” a phrase used when a company conducts business under a name other than the owner’s legal name. It is sometimes referred to as an assumed name or fictitious name. A DBA does not provide the business owner with any legal protection because it is not a legitimate entity. It is an alternative method of branding and marketing your company without the need to establish a new legal entity.
The “Australian Business Number,” or ABN, is a special 11-digit identification number provided by the Australian Business Register. It serves as a means of identifying your company to the authorities and other companies. Businesses that are registered for GST or have an annual revenue of more than $75,000 are obliged to have an ABN.
In Tennessee, you must fulfill a number of requirements before you may become tax-exempt. By submitting the required paperwork and documents, nonprofit organizations can request tax-exempt status from the Tennessee Department of Revenue. By submitting a 501(c)(3) status application to the Internal Revenue Service, you can also determine whether your organization qualifies for federal tax-exempt status.
Individuals or organizations that conduct taxable business activity in Tennessee are subject to the business tax. Depending on the type of business and the quantity of money produced, the tax rate varies. However, some companies—including non-profit organizations and specific agricultural pursuits—are free from the tax.
Depending on the kind of business structure you have, a DBA may or may not require a separate bank account. You are not obliged to establish a separate bank account for your DBA if your company is a sole proprietorship. For accounting and tax considerations, it is advised to keep your personal and corporate finances separate. You must have a separate bank account for your DBA if your company is a partnership or corporation.
Last but not least, it is critical to use your full legal name when submitting a DBA under your legal name. Your first, middle, and last names as well as any prefixes like Jr. or Sr. are included in this. You must register it as a DBA and use it in all legal documents and contracts if you use a name other than your legal name, such as a stage name or a pen name.
In conclusion, it is important to recognize the distinction between a DBA and an ABN in order to comply with the law. Businesses that engage in taxable activities are subject to business tax, and you must fulfill specific requirements to become tax-exempt in Tennessee. The business structure will determine if a DBA requires a separate bank account, and it is crucial to write your full legal name when creating a DBA.