Choosing the ideal name is essential when launching a business. But on sometimes, a company may have to alter their name for a number of reasons, including bankruptcy, a new organizational structure, or just a shift in focus. As a result, you might wonder if you can utilize a business name that has been cancelled for your own venture.
The quick response is no. A business name that has been canceled cannot be utilized by another organization. Even if the name is not registered as a trademark, it is still protected as intellectual property, and misuse of it may result in legal problems. It’s critical to conduct a thorough search to make sure the name you select for your company is not taken or hasn’t been used before.
On the other hand, you might attempt to buy the rights to a business name if you still want to utilize one that was rejected. You can do this by getting in touch with the company’s prior owner or by hiring a trademark lawyer. It is best to pick a distinctive name for your company right away because this might be a time- and money-consuming procedure. Let’s now discuss the tax advantages of a dba, or “doing business as” name. A dba is a name that a company can use to carry out commercial operations under a name other than its legal name. This enables sole proprietorships and partnerships to conduct business under a name that is more known to customers, which can be advantageous.
In addition, a dba can facilitate bank account opening and transactional processes for firms. Additionally, if a company wants to operate under a different name, certain states require them to file a dba.
The answer is not simple to the question of whether it is legal to sell goods online without a company license. Your state’s laws and the kind of goods or services you are selling will both have an impact. You might not need a company license, for instance, if you sell handmade goods on Etsy. However, you could require a license and permissions if you’re selling goods that the government regulates, like food or alcohol.
Last but not least, there are a few measures you must take in Colorado if you wish to establish a sole proprietorship. Choose a name for your company and register it with the Secretary of State’s office first. Then, get any licenses and permits your firm needs. Finally, if you intend to hire staff or have specific tax requirements, request an Employer Identification Number (EIN) from the IRS.
In conclusion, picking a distinctive name for your company is crucial because utilizing a business name that has been canceled could result in legal problems. While the requirement for a business license varies on the goods or services you are selling and the rules in your state, having a dba can offer tax advantages and make transactions easier. In order to establish a sole proprietorship in Colorado, you must register your business name, get the relevant licenses and permits, and, if required, obtain an EIN.
You still need a business permit even if you only sell things online since you are running an enterprise that makes money. The permit makes sure that your company abides by rules set forth by the government, including tax and safety restrictions. A business permit might also assist you in building trust with clients and suppliers.