The right business name is important because all other business legal decisions are based on the business name.
For example: •Business cards, stationery, and office forms will carry the business name. •All advertising and marketing materials will feature your business name. •Business name is on all business formation documents, such as Articles of Organization for an LLC or Articles of Incorporation for a corporation. •Business loans are given to a specific business, which is named in all loan documents. •Many companies use their business name as their domain name for the company web site. The business name is registered with the locality and state where the business is organized. If the business operates under another name, it must file a fictitious name (“doing business as”) statement.
Sole Essay Example
•The business name is on all contracts and agreements made by the company. You can see how important a business name and why it must be the first step you take in starting your business. Considerations in Selecting a Business Name Before you select a name for your business, be sure it fits the business now and in the future, and that it is meaningful and not confusing.Make sure the image your name brings to the minds of those who hear it is what you want. Once you select a business name, and put it on company letterhead. Read more about selecting a business name. Check the Availability of Your Business Name Before you start putting your business name on all those documents and applications, be sure you check the availability of the name you have selected.
Start by searching the Internet for the name. Search for your name in your state’s business division data base, and check with the U. S.Patent and Trademark Office to see if anyone has trademarked your name. If you find that your name is already taken, particularly if someone else has a domain name with your name in it, you may need to consider another name to avoid confusion and legal issues (for trademark violation, for example). Read more about researching the availability of your business name. Do You Need to Register your Business Name? After you search for your business name and have selected a name you want to use, you may register your business name in your state.
You do not need to submit a separate business name registration in your state if you are going to form a state business entity (LLC, partnership, or corporation). The business formation includes a name search and registration by the state. If you are starting a sole proprietorship or not forming a state entity right away, it’s a good idea to register your business name to reserve the name and keep it from being used by someone else. Read more about how to register a business name in a state. Should You Trademark Your Business Name? Your business name is an intangible asset of your business.Even though it can’t be seen or touched, like a desk or piece of equipment, your business name has value. It can be sold, and can be part of the purchase price of your business.
If you have a unique business name, or if you intend to use your business name online or across the U. S. , you may want to go through the trademark process. A trademark doesn’t prevent someone from trying to use your business name, but it gives you a huge advantage in a lawsuit and it may make someone back down if they see you have already trademarked the name. Read more about How to file a trademark applicationHow to Change Your Business Name If you decide to change your business name, it can be done. Of course, there are many documents that will need to be changed. The most important documents are those relating to your business formation with your state and tax documents filed with the IRS.
Notify your state secretary or state and the IRS and local entities about your business name change. Read more about Changing Your Business Name Do I Need an Attorney to Register My Business Name? You don’t need an attorney to find a business name and search for that name as described above.If you want to register your business name in your state, and the registration is not part of the process of forming a state entity like an LLC or a corporation, you can register your business name without help from an attorney. You may find, though, that an attorney is helpful in doing deeper research and may find an existing name you have missed. Disclaimer: The information in this article and on the GuideSite is general in nature and is not intended to be tax or legal advice. Every business situation is different and you should always check with an attorney before making any major business decisions.Starting a Sole Proprietorship Most small businesses are sole proprietorships, because this type of business is the easiest and least expensive way to start into business.
Here is the information you need to start a sole proprietorship: Sole Proprietorship A sole proprietorship (or “proprietorship”) is a form of business in which an individual starts a business under his or her own name. In a sole proprietorship, you are the business; that is, the business is not a separate entity from you. If it sounds simple, it’s because it is. The sole proprietorship is the oldest and simplest form of business ownership.To start a sole proprietorship, all you need to do is: •Create a business name and decide on a location for your business •File for a business license with your locality, and get permission from your locality if you want to operate your business from home •Set up a business checking account. You don’t need to prepare any legal documents because you are not in business with someone else, and you don’t have to set up an elaborate business structure: no board of directors, no meetings, no minutes, no complicated accounting for shares in the business.If you decide to set up your new business as a sole proprietorship, follow the Startup Steps and you will be ready to go.
Taxes Paid by Sole Proprietorships A List of the Taxes Paid by Sole Proprietors By Jean Murray, About. com Guide See More About: •sole proprietorships •disregarded entities •sole proprietorship taxes Ads Expat Taxes – Fast & EasyUS Expat, US Non-Res Tax Return Special! Quick and Professionalwww. expatriatetaxreturns. com Export from ChinaHuge Network of China Suppliers & Manufacturers. Get Connected Today!Made-in-China. com Small Business AccountingCompare Accounting Software Vendors Reports, Analysis, Ratings & More! Accounting. TechnologyEvaluation.
com US Business Law / Taxes Ads •Property Taxes •Sole Proprietorship •Income Taxes •Back Taxes •Sales Tax Taxes Paid by Sole Proprietorships A Sole proprietorship is a business operated by an individual owner. This type of business is considered a “disregarded entity” because the business is not disregarded when considering the owner’s personal financial status.Sole proprietorships are also considered “pass through” entities, because the profits or losses of the business pass through to the owner’s personal tax return. Here are the taxes paid by a sole proprietorship: Federal and State Income Taxes Since the sole proprietor’s business is not separate from his or her personal finances, the business taxes are determined by using a Schedule C from the individual’s Form 1040 for federal income taxes. The Schedule C profit or loss is added in with other income by the owner and spouse, to determine the amount of tax payable.For example, if the owner has a business loss of $1,000 and other income of $50,000, the total income for tax purposes would be $49,000. The same method is used for state taxes.
Most states use the federal Schedule C to determine total income for state tax determination. Self-employment Taxes A sole proprietor is a self-employed individual and must pay self-employment taxes based on the income of the business. Self-employment tax is included in Form 1040 for federal taxes, calculated using Schedule SE,, and the total self-employment tax liability is included on line 57 of Form 1040. Other Employment TaxesIf a sole proprietor has employees, the business must pay employment taxes, including withholding and reporting federal and state income taxes, paying and reporting FICA (Social Security and Medicare) taxes, worker’s compensation taxes, and unemployment taxes. Property Taxes If the sole proprietor owns a building or other real property, property taxes are required to be paid on this property. State Sales, Excise, and Franchise Taxes Sole proprietors are required to pay state sales taxes and excise taxes in the same manner as other business types. Check with your state department of revenue for more information on sales and excise taxes.
Sole proprietorships are not typically liable for franchise taxes, as these are levied by states on corporations. The Disadvantages of Sole Proprietorship By Jeremy Slaughter, eHow Contributor The Disadvantages of Sole Proprietorship All business types have advantages and disadvantages. Often, the advantages involve the ability to raise capital or reduce taxes. Sole proprietorships are easy to establish and offer the most control over a business, because you are the sole owner. However, sole proprietorships do have some disadvantages you should assess before doing business.Other People Are Reading • The Disadvantages of Paying Your Children With a Sole Proprietorship • What Kind of Liability Do Sole Proprietorships Have for Debts? • • • •Print this article 1. Significance oSole proprietorships offer the ability to start a business immediately with limited experience.
If you have minimal legal exposure and don’t expect to make much profit, a sole proprietorship might be the right fit. But before operating a sole proprietorship, determine if the disadvantages outweigh the ease of formation and operation in your specific situation.If you need additional legal guidance, consult a business attorney in your area. The Facts oSole proprietorships are a simplistic form of business. Ownership consists of one person, and that person is typically involved in all aspects of the business. You pay the taxes, maintain legal ownership of the assets and are legally responsible for the liabilities. No legal documents are required for formation.
For federal tax purposes, you can start a sole proprietorship with nothing more than business activity. Depending on your state and the type of business, you may be required to register or obtain a license.Contact your state business division to determine eligibility requirements. oSponsored Links ?Free Cooking Recipes Search Hundreds of Free Recipes. Thousands of Recipes in One Toolbar TotalRecipeSearch. com Funding Issues o Although control and ownership provide you with a high degree of autonomy, you may have difficulty funding growth within your sole proprietorship. Sole proprietorships have more difficulty raising capital, because of the limitation of sole ownership.
You are responsible for capital injections and are not able to offer ownership in exchange for capital investments.