Sole proprietor/assumed name

Looking into Minnesota's laws on sole proprietorships it appears as though the only option is to list under an assumed name. I was wondering if any of you guys are under this assumed name status. The state under this status does not protect your businesses name. Also under assumed name does this make you a legitimate business at that time or must you list under some other name or status? Once under an assumed name can you receive checks under this name,open a bank account under this name as well as file taxes under the name? Sorry for the dumb question as it should be simple but cant seem to grip it.

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Originally Posted by F350scrapper

Looking into Minnesota's laws on sole proprietorships it appears as though the only option is to list under an assumed name. I was wondering if any of you guys are under this assumed name status. The state under this status does not protect your businesses name. Also under assumed name does this make you a legitimate business at that time or must you list under some other name or status? Once under an assumed name can you receive checks under this name,open a bank account under this name as well as file taxes under the name? Sorry for the dumb question as it should be simple but cant seem to grip it.

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Are you referring to a"DBA"? Doing Business As?

Yes i am.

I don't know how its done in your state, but the state iam lic. in (Delaware) its just a matter of paying a fee and they do a search to see if anyone else is doing biz under that name. Take the paper work to your bank and open an account under ur DBA.
Its been so long for me ,I went to court house, you can probably do it online.

And yes my DBA is protected within a certain geographic area. Not sure think it's 100 mile radius.

Hawaii uses common law of ownership when it comes to trade names. As long as you use the name openly in the marketplace you have ownership, they don't have to be registered. They only have to be registered with the state if you want to open accounts and/or accept checks, etc. under that name. It also saves a lot of headache in the event someone else wants to use your trade name. Here in Hawaii, it gets kind of complicated with Hawaiian words and 'okinas and such (Kala'eloa vs. Kalaeloa, etc.).

I just got done reading up on Wisconsin stats on this and I was shocked reading this. This includes LLC corp...

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Although these registrations create a public record the use of a business name, the registrations do not establish or reserve exclusive rights to use of a name.

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To tell you the truth, before talking to a CPA or business Attorney. I would talk to your banker. It's their job to know these things.

I'd go for a single person LLC. That creates a completely separate legal entity. You're protected more than you are with a DBA.

But, a DBA should be able to be used in a bank account, ...

I am not worried much about legal issues as I am a junk hauler. I am looking to lock up my businesses name for myself as well as show up as a legit company in order to advertise more freely for example on the radio as well as to file taxes and write off my costs.

Legalzoom.com

It doesnt matter what you're doing accidents and lawsuits happen.

Trademark your name, for now. A TM next to it identifies you as using it for the purpose of business. The complication comes when someone else is already usong it or trys to highjack your name. Once youve established your name and you can prove youve been using it xx amount of years should curtail any legal issues. I believe you may have to be a seperate entity but im not sure an idividual might be able to do this as well.

I recommend registering the trademark through a trademark/ patent lawyer ( yes theyre out there specializong in this) . Registering can be a little pricy and takes 12 to 18 months to get approved. No one can use your brand once you do this or you can take legal action. The little r circled can be used once you recieve your approval from the fed government.

Here in Hawaii, you can file a trade name online. It takes about a week and costs about $50 (I believe). Renewal every 5 years and the name is good state wide. If your only concern is someone else taking the name, under common law you are perfectly fine. Might be kind of a headache to prove you used it openly first (in the event of a dispute) but it's already yours as far as the law is concerned. Registering it officially with your state (or county, depending on where you are) will only serve to prevent headaches later on down the road.

Filing an LLC protects your personal assets and if you don't mind paying taxes and doing a little more paperwork, that is the route you want to go. Even if its only a hobby. If you get into a car accident while on a haul, your LLC will protect your personal assets (like your home, wages, etc.).

But in terms of being a legitimate business, you can operate under whatever name you want (under common law). But, honestly, how you conduct yourself projects greater legitimacy than a name.

Car accident would be covered under insurance??? Say I put a hole in a wall in a guys house I could buy liability insurance as a sole proprietor and Inurance cover that as well? Am I right?

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Originally Posted by F350scrapper

Car accident would be covered under insurance??? Say I put a hole in a wall in a guys house I could buy liability insurance as a sole proprietor and Inurance cover that as well? Am I right?

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Plan for the worst, hope for the best. I'm not sure of your personal insurance situation but if I get into a car accident with my company van and end up crippling / killing someone, I do not want to lose my house in the ensuing lawsuit. As a sole proprietor, your house, personal vehicle, wife, personal liquid assets, accounts, stocks, bonds, child's college funds, etc. all become a part of your business and are put at risk. Not only is it injury liability however. You are also free of legal liability (to an extent). I do not think that moving to an LLC is appropriate for you just yet and I really do not think you will run into trouble anytime soon (or ever), but it's just something to consider.

As far as your name goes, however, you're already set just by virtue of using it openly. Registering it with your county (or in cases like Hawaii, the state) will buff your claim to the name and prevent further headaches. It's good to check out the registry anyway just to see that it's not already taken, just for good measure.

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Good luck!

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