Regarding Public Record and Anonymity With a Sole Proprietorship

[tastyirl]

What is the name of your state (only U.S. law)? VIRGINIA

Hey!

So I'm at the point where I have to file all the paperwork to start my business(sole proprietor). I have, and expect to have 0 employees, 0 real estate, and I don't need a bank account for my business. What would be the most anonymous way to go about this? I am trying to avoid problems with my ex-employer regarding my no-compete contract. I am not doing business within the 100 miles stated in the contract, my business is online only, but my actual location is within a few miles.

From what I've read, the most public information is the DBA, but since I don't need a bank account or real estate, and I sign everything with my real name I don't think I need one at the moment. I know I need the state tax id number to be able to buy from distributors, but I read that is supposed to be private, like an SSN. Is there anything other than the DBA that is public record?

Once the 10 months left on the contract end I would love to take everything as far as possible, but for the time being I just want to pay my bills and build up a solid customer base.

Thank you!

 

[quincy]

What is the name of your state (only U.S. law)? VIRGINIA

Hey!

So I'm at the point where I have to file all the paperwork to start my business(sole proprietor). I have, and expect to have 0 employees, 0 real estate, and I don't need a bank account for my business. What would be the most anonymous way to go about this? I am trying to avoid problems with my ex-employer regarding my no-compete contract. I am not doing business within the 100 miles stated in the contract, my business is online only, but my actual location is within a few miles.

From what I've read, the most public information is the DBA, but since I don't need a bank account or real estate, and I sign everything with my real name I don't think I need one at the moment. I know I need the state tax id number to be able to buy from distributors, but I read that is supposed to be private, like an SSN. Is there anything other than the DBA that is public record?

Once the 10 months left on the contract end I would love to take everything as far as possible, but for the time being I just want to pay my bills and build up a solid customer base.

Thank you!

I strongly recommend you have your non-compete agreement personally reviewed by an attorney in your area. Building "a solid customer base" now may, on its own, breach the terms of your signed agreement.

It is possible to operate a business with a degree of anonymity. You can have a registered agent accept official documents. You would want a physical address for your business that is separate from your home address. It is generally possible to have as a physical business address a UPS store mailbox (but you cannot use a USPS mailbox as your physical address).

Here is a link to Virginia's State Corporation Commission on what is required (I have linked to the FAQ section): https://www.scc.virginia.gov/clk/faq.aspx

Sitting down with a business law professional can help you legally structure your business to keep your personal identifying information as personal as is possible. You will not be able to avoid the legal consequences of violating the terms of your non-compete by making yourself an anonymous competitor, however.

 

[FlyingRon]

You don't file fictitious names (DBA) with the SCC here in Virgina, those get filed with the circuit court (in whatever county or independent city you are in). This is only necessary however if you intend to do business under a name different than the underlying legal entity (which for a sole proprietorship is your name).

Information on fictitious names here: https://www.scc.virginia.gov/clk/befaq/fict.aspx and the form is here http://www.courts.state.va.us/forms/circuit/cc1050.pdf

Sales and use tax is here: http://www.tax.virginia.gov/content/sales-and-use-tax

Note, you should not be using a sales tax number to dodge sales tax unless those items are ones you will be reselling (directly or bundled into a taxable product) that you will be collecting and remitting tax on. You don't say what form of business you intend to conduct so it's not clear what sales and other tax registrations you are going to need (There are some odd ones like the litter tax etc...).
Further, once you start an account, you need to be diligent about the filing. There are penalties for failure to make your periodic reports even if you don't owe any tax.

 

[tastyirl]

I'm sorry for not saying earlier, my business is screen printing - custom t-shirts. I don't sell inside the state(since I don't sell within 100 miles of my previous employer) so I don't need to collect sales tax, although I need the tax forms to do business with distributors and for keeping my business legal.

I am pretty confident that if I was taken to court, that I would win. I have done a ton of research over the past year, and I am extremely careful to not compete with my ex-employers legitimate business interests. I am trying to avoid being tied up in court, from what I've read if she suspects I am competing she can file an injunction which would stop me from working until it's all sorted out in court and that would kill me. I have absolutely no interest in my ex-employers customers at all.

What about putting it in someone else's name? I have a few people that I trust, and we have discussed this option.

 

[quincy]

I'm sorry for not saying earlier, my business is screen printing - custom t-shirts. I don't sell inside the state(since I don't sell within 100 miles of my previous employer) so I don't need to collect sales tax, although I need the tax forms to do business with distributors and for keeping my business legal.

I am pretty confident that if I was taken to court, that I would win. I have done a ton of research over the past year, and I am extremely careful to not compete with my ex-employers legitimate business interests. I am trying to avoid being tied up in court, from what I've read if she suspects I am competing she can file an injunction which would stop me from working until it's all sorted out in court and that would kill me. I have absolutely no interest in my ex-employers customers at all.

What about putting it in someone else's name? I have a few people that I trust, and we have discussed this option.

I don't think anyone here will advise you to operate your business under another person's name to avoid the legal restrictions placed on you by your non-compete agreement.

I recommend you sit down with a business law professional in Virginia to discuss your current business plans and to go over the non-compete agreement you signed with your former employer. The attorney you see can tell you how the non-compete will restrict your plans, how you can best avoid violating its terms, and what is necessary in setting up your business in Virginia.

Good luck.

 

[FlyingRon]

The fictitious name (DBA) will hide your identity a little bit. Of course, she likely will put two and two together no matter what DBA you use and or the even if someone else appears to "own" the business. I suspect your noncompete agreement covers working for someone else's business as well.

If you need a tax certificate so that suppliers think you are real, fine, but as I stated it's not a legal requirement and furhter it is illegal to actually use the certificate to avoid paying sales tax unless you're going to use those items to generate a taxed sale on your part.

Virginia is a big place. There's no place in the state that you can be that won't have some other part of Virginia 100 miles away.