Should I Change My Last Name Before or After Filing Taxes?

Changing one’s name is an individual choice that may be motivated by a variety of events, including marriage, divorce, or the desire to take on a new identity. However, this procedure can be difficult and have ramifications in terms of law and money, particularly when it comes to filing taxes with the Internal Revenue Service (IRS).

The issue of changing one’s last name before or after filing taxes comes up for married or divorced people. The date of the name change is what determines the response. The new name should be used on the tax return if the name change took place before the end of the tax year. On the other hand, the former name ought to be utilized on the tax return if the name change happened after the end of the tax year.

You should be aware that the IRS can determine your marital status from your tax return. The possibilities for filing status include head of household (which necessitates being single or deemed single), married filing jointly, and married filing separately. As a result, you must notify the Social Security Administration (SSA) and alter your name on your Social Security card if you get married and change your last name. By doing this, you may make sure that your name and Social Security number (SSN), which is used to identify you on your tax return, are exactly the same.

It is typically not a good idea to name your company after yourself when choosing a name. This is due to the fact that it restricts the company’s capacity for expansion and may make it challenging to sell the company in the future. A person’s name could also not appropriately describe the company’s goods or services. Instead, opt for a distinctive and memorable company name that is simple to say and spell. Before establishing your LLC, it’s crucial to think about trademarking your chosen company name. By doing this, you’ll safeguard the name of your company and stop others from utilizing it. Additionally, it grants your company the ability to file a lawsuit against anyone who uses your trademark without permission. Speaking about LLCs, it’s critical to comprehend the distinction between an LLC and a DBA. DBAs, or “doing business as,” are company names that aren’t the same as the owner’s legal identity. It is frequently utilized by partnerships and single proprietorships that want to conduct business under a different name for branding reasons. A corporate form known as an LLC, or limited liability company, shields the owner’s personal assets from debts and liabilities incurred by the company. Additionally, it provides flexible management and tax alternatives.

Finally, changing your name may have legal and financial repercussions, particularly if you need to file taxes with the IRS. If you’re thinking of changing your name, it’s crucial to comprehend the procedure and time of the change. When naming a company, it is best to use a name that appropriately describes the company’s goods or services while also being distinctive and memorable. Additionally, before establishing your LLC, think about trademarking your chosen company name. Finally, be aware of the distinctions between an LLC and a DBA and select the business form that best suits your requirements.