Do You Have to Register as a Sole Proprietor? (Answer Inside)

You may wonder – Do you have to register as a sole proprietor? This is a valid question and one worth noting, as limited liability companies (LLCs) must register with the state before they can begin operations. However, you do not have to do the same as a sole proprietor – not unless you set yourself up as a doing business as or DBA company. This is necessary to do if you do not plan to use your first and last name as a business entity.

If you want to obtain help for setting a DBA business, call to speak to us here: https://mollaeilaw.com/start to get your questions answered and establishing your sole proprietorship as a DBA business, giving it a fictitious business name.

 

Why Do You Have to Register as a Sole Proprietor if You Add a DBA Name?

You do have to register as a sole proprietor when you create a DBA name. If you are operating as a sole proprietor, you need to register your business or file a DBA if your business operates under a different name than your own. 

For instance, if you, as Jane Jones, are a sole proprietor, but want to set up Precise Editing Services, you need to file a DBA. In some instances, you do not need to file a DBA if your company name combines your name and a description of the product or service you offer. 

For example, you don’t have to file a DBA if you call your business Jane Jones’ Precise Editing Services. However, if the business is called Jane’s Precise Editing Services, you need to register a DBA. If you are not operating under your legal name, you need to register the DBA and your business.

 

If You Do Have to Register as a Sole Proprietor as a DBA Name, What Are the Takeaways?

If you do have to register as a sole proprietor as a DBA name, you will find that this strategy may work for you. The following reasons make this form of registration very attractive.

#1 Registering your sole proprietorship as a DBA is the easiest and most affordable way to attract business and get recognized by customers.

By taking this approach, you can crate a distinct professional business image without the need to form a corporation or limited liability company (LLC).

#2 You can run multiple businesses as a sole proprietor when you register your sole proprietorship as a DBA.

You can use a DBA for each small enterprise you operate. This can help your businesses separated and organized for tax and legal purposes.

#3 You want to create a creative or memorable business name.

Operating under a DBA also helps you create a name that is unforgettable. To protect your brand and name, you should check about trademarking your business’s brand or name, thereby registering your sole proprietor’s services and products. Trademarks are used to safeguard business names, logos, slogans, designs, and symbols – all which can be used to identify your business’s offerings.

#4 Your bank needs a DBA to open a business bank account.

Many banks require that sole proprietors and partnerships operate under a DBA before they will accept their business bank account. You should show the bank your DBA filing to demonstrate registration for your sole proprietorship.

#5 You want to target a new market under a new domain name.

By filing DBA business names for different services and products, you can more easily reach niche markets and realize larger sales.

#6 You want to make your business (DBA name) part of the public record.

You can make your business part of the public record when you legally establish a DBA name. To learn more about this type of small-business registration, call to speak to us here: https://mollaeilaw.com/start. 

 

If You Do Have to Register as a Sole Proprietor with a DBA Name, what Changes Can affect the Registration?

If you do have to register as a sole proprietor with a DBA, you may have to make modifications in the following instances:

• You incorporate or become an LLC company
• You relocated your business
• You appoint new members, partners, or businesses.

In some states, when changes happen, you may need to file an amendment. In other venues, you may need to fill out an entirely new registration. Therefore, it is important to update your DBA, as needed.

 

What Happens Next?

If you do have to register as a sole proprietor and include a DBA name, you should call to speak to us here: https://mollaeilaw.com/start. Doing so will give you the information and support needed to ensure that the DBA process goes smoothly.

To register a DBA, you will first need to see if the name has been taken. This can be done by accessing the Secretary of State’s database where you do business. Doing so will clarify if the name can be used. If the name you like has been taken, you will need to come up with a new name. Before you access the database, make sure you have two or three names in mind.

More than Just a Name

You have to consider this – the name you choose as a business name is more than just a name. It identifies you from a professional and business perspective. Therefore, it becomes a powerful component in your business strategy. 

That is why you need to call to speak to us here: https://mollaeilaw.com/start. Doing so will help you see the benefits of registering a sole proprietorship with a DBA. You can also use this approach is you are set up as a limited liability company (LLC) or a corporation. Take time now to think what name best represents your brand identity and the vision for your company.

If you want your small acorn company to expand and grow as an “oak,” the name you choose should be made a priority. Again, contact a lawyer to help you with filing a DBA and ensuring that your name can stand the test of time. 

Remember, it is illegal to operate as a sole proprietorship with a DBA name that has not been registered. Some states can impose harsh fines for overlooking the registration of a DBA name. 

Call Us Today

If you want to avoid this type of legal infraction, you need to contact a business attorney. Call to speak to us here: https://mollaeilaw.com/start to launch your sole proprietorship company.