A business that conducts business under a name different than its legal name is referred to legally as a DBA (Doing Business As). To operate under a different name, some states require firms to file for a DBA, while others do not. Which states don’t demand a DBA, then?
It varies by state, is the response. Some states, like Alaska, Arizona, and Arkansas, do not mandate that companies register a DBA. However, several states do require a DBA registration, including California, Florida, and New York.
You can use the state’s business registration website to search for the availability of a company name. You may look up existing business names in the online databases maintained by the majority of states. To avoid potential legal problems in the future, it’s crucial to confirm that the name you select is not already in use.
The answer to whether you can run two independent enterprises is yes. As a sole proprietor, you are allowed to run various firms. But it’s crucial to remember that every company will need to register and receive a unique tax identification number.
The same applies to a business with two sole proprietors. It’s crucial to remember, though, that each sole proprietor will need to register and have their own tax identification number. Each lone proprietor will also be accountable for their own debts and responsibilities.
The rules for a DBA differ from state to state, therefore it’s crucial to visit the website for business registration in your state to determine whether a DBA is necessary. Make sure to perform a search before selecting a company name to make sure the name is not already in use. It is possible to have many sole proprietorships or firms, but each one needs to be registered and have a unique tax identification number.