I did it from the outset. It only cost $25 to file with the state (Maryland) and the form wasn't much more than the name of the company and My Name/Address. If you're going to be doing things under another name, and if anyone is going to be sending you a check to the business name, it's best to just do it and be done.
There would be no reason for me to have a business tax license. Legally, in the eyes of Uncle Sam, I am not a business. I don't have a checking account in the business' name, and hadn't really planned on needing one...but now that you mention a checking account, I realize it might be useful to have. So maybe I will file a DBA, just for that reason alone.
Originally posted by AntiSpamHosts There would be no reason for me to have a business tax license. Legally, in the eyes of Uncle Sam, I am not a business.
I'm curious as to how you're coming up with that assessment.
When, I say business tax license, I'm talking about a license you would have with the particular city and/or county you are doing business in.
It's not so much as a "license" but, basicaly just you paying your yearly/quarterly city/county business taxes.
If you're not doing business... then you have no need to file a DBA/Fictitious Business Name Statement.
If you like your Business and don't want anyone else to have it
DBA. It's cheap I live in OC CA and used:
I used OC Register newspaper
Why file a fictitious business name statement?
To open a business account with a bank.
To protect your business name from being used by someone else.
To be entitled to entertain action in any court of the State of California.
As a sole proprietorship you don't pay business taxes. You pay personal income tax on all money you make. Same with a DBA and LLC, in every state I've heard of.
I guess I gotta love MN. $125 to register as an LLC and no annual fees.
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For anyone else reading this thread (for future reference), as far as I know, from what I learned in my Business Law class:
Even if you are running as a Sole Proprietor, if you are doing business under any name OTHER than your legal name, you MUST register a DBA, also called AN (Assumed name).
For Example. I can do business as "Aaron Abramson Hosting" as a sole proprietor without filing for assumed name, because I'm using my own full legal name. But if I am operating as "Utaria Web Services', I MUST file for assumed name.
In either case, I strongly recommend checking with your states office of the Secretary of State.
Having a DBA/Fictitious Name Statement has nothing to do with business entity type, you may or may not need the filing for all entity types.
I think what you meant to say is, that with sole proprietorships, general and limited partnerships, S corp,s and some LLCs owners' typicaly pay their federal business taxes through their personal income tax return.
That doesn't mean they don't possibly owe completely separate local city business tax fees.
Ie, in my particular city:
"All persons or companies conducting business in San Jose must pay the business license tax whether or not they have an office located in San Jose. This tax is required prior to the commencement of business in San Jose. All businesses pay a basic tax rate of $150.00. Businesses employing more than eight people also pay a tax increment of $18.00 for each additional employee. Commercial and residential landlords and mobile home parks pay based on square feet, units or lots, respectively."
They don't care wether you're a sole proprietorship, or the largest C Corp in the world.