Filing DBA Trade name questions

[artistdraw]

What is the name of your state? New Jersey

I am sending in the paper work to file DBA (trade name) and was wondering if it even makes sense getting an EIN number. Do you get to apply for loans or do you have to start an LLC or corporation etc?
Also I saw something about some states require publication of new DBA's I don't see anything about that online for New Jersey.
Also Legalzoom and other sites charge $99 for the service I downloaded the application it's 4 questions am I missing something? IS there another step after this? I am trying to find out why people would pay to have it done.

 

[FlyingRon]

A "DBA" isn't an entity in it's own right. It's a registration of an alias for something else. If it you are "Joe Blow d/b/a Creative Artist" then the entity is Joe Blow and you use your SSN. If you have an LLC or Corporation and are operating under a d/b/a for that entity, then you'd use the EIN or whatever the entity uses/

 

[Zigner]

I am trying to find out why people would pay to have it done.

Because they don't know what they're doing and want to hire a pro for the assistance.

 

[Taxing Matters]

I am sending in the paper work to file DBA (trade name) and was wondering if it even makes sense getting an EIN number.

A trade name (e.g. DBA) is not separate business entity. A trade name means a name used by a person or business entity for conducting business other than the person's/entity's legal name. For example, if John Doe conducts a business as "Doe's Food Delivery Service" then Doe's Food Delivery Service is a trade name of John Doe and pretty much every state, including NJ, requires John Doe to register that trade name. Similarly if High Mountain LLC conducts business under the name of "Far Horizon Fruits" then Far Horizon Fruits is a trade name of High Mountain LLC and it will have to register that trade name.

A federal Employer's Identification Number (EIN) is only required if a person or entity must file a tax return with the IRS for which a SSN cannot be used. These returns essentially fall into 4 categories (1) employment tax returns (that is, taxes related to having employees, (2) returns for certain types of pension plans, (3) returns filed by corporations, partnerships, and trusts, and (4) excise and other less common business related tax returns. If you are a sole proprietor and do not have employees, do not maintain pension plans that require filing of separate plan returns (which would be very unusual for a sole proprietor, and don't engage in a business activity that is subject to excise tax returns or other special federal business taxes you won't be required to have an EIN. You may nevertheless find having an EIN to be useful, either for business banking purposes, for privacy of your SSN or whatever. It really depends on what kind of business you plan to do whether an EIN would be helpful to you.

 

[quincy]

https://www.state.nj.us/treasury/revenue/gettingregistered.shtml

You can access a list of New Jersey businesses online. The link provided above explains how.

 

[FlyingRon]

Note that DBAs are kind of skimmed over on that page. A DBA is not a business registration (just a registration of the fictitious name) and doesn't require, nor provide for, any uniqueness.

 

[quincy]

This link provides a bit more information. https://www.state.nj.us/treasury/revenue/altname.shtml

Because artistdraw wants to have trademark protection for his d/b/a, he might want to speak to an IP attorney in his area before filing.

 

[artistdraw]

This link provides a bit more information. https://www.state.nj.us/treasury/revenue/altname.shtml

Because artistdraw wants to have trademark protection for his d/b/a, he might want to speak to an IP attorney in his area before filing.

Thanks. I called the county clerk a few times they are closed for the holidays. Maybe someone here knows the answer to this question: "The place where the said business is now or is about to be conducted is"
My business is an e-commerce business but I do have a mailing address so I assume the mailing address would go here even though I am not physically doing business there.

 

[FlyingRon]

Yeah, wherever in the state you are is fine.

 

[quincy]

Thanks. I called the county clerk a few times they are closed for the holidays. Maybe someone here knows the answer to this question: "The place where the said business is now or is about to be conducted is"
My business is an e-commerce business but I do have a mailing address so I assume the mailing address would go here even though I am not physically doing business there.

You want to include a physical address (name, address, zip code) where you can receive business/tax mailings. You will also be including your New Jersey County/Municipal Code for where your business is located (the location of which can affect your taxes).

 

[slac.in.the.box]

I am trying to find out why people would pay to have it done.

I use different names for enterprises that are in a different market sector than my primary enterprise, so customers can make payments to a name that makes sense for the enterprise.

Ask yourself: could someone file a lawsuit against me for this secondary enterprise, even if I'm doing everything correct? If you answer yes, then I would create a separate LLC. If you answer no, then why not create a DBA, as it cost less to register, and doesn't create separate entity to report on.

For example, I created a DBA for a calling card enterprise, because it is unlikely that, if a customer experiences poor call quality, that they would try a lawsuit for their lost fraction of a cent; they are more likely to choose a different provider.

On the other hand, I created an LLC for my farrier serrvice, because working with horses has lots of additional liability--someone could feed / exercise their horse improperly, causing founder, and then try to blame my hoof care; such a person just might file a lawsuit; therefore, due to the additional liability, the LLC was a better choice than a DBA for the farrier enterprise.

 

[quincy]

Slac.in.the.box, please note the dates on threads. This thread was created in December of last year and is considered an “old” thread on this forum. Old threads should only be revived by the original poster and not by others. Thanks.

 

[slac.in.the.box]

Thanks. My Bad. Didn't even look at the date. Wasn't too far down, and I noticed nobody mentioned liability in the thread, so chimed in -- too belatedly. Cheers.

 

[PayrollHRGuy]

Thanks. My Bad. Didn't even look at the date. Wasn't too far down, and I noticed nobody mentioned liability in the thread, so chimed in -- too belatedly. Cheers.

You also didn't see anyone mention the distance to the moon in the thread. That is likely because the OP didn't ask about it.

 

[quincy]

You also didn't see anyone mention the distance to the moon in the thread. That is likely because the OP didn't ask about it.

238,900 miles.