Can you have multiple DBA’s under one sole-proprietorship?
Your business can only have one legal name attached to the EIN number you have been assigned by the IRS. For this reason, many people file for a DBA. What is a DBA? A DBA (Doing Business As) is also referred to as “Assumed Name,” “Fictitious Business Names,” or “Trade Name.” This is a name that is separate from the legal business name assigned by the IRS but is still attached to the legal business name as issued by the state, county or city.
As a sole proprietor, your legal name is the legal name of your business. Therefore, to do business by any other name, you would need to have a DBA under a sole proprietorship. For example, your legal name is John David Smith, and that is the legal business name assigned to the EIN. Your DBA on the other hand, registered with your state, can be Beachside Cafe.
Multiple DBAs
Having multiple DBAs can be an advantage for businesses that are structured as an LLC. The main reason being that the LLC can segment different business markets operating each segment with a different DBA.
When it comes to a sole proprietorship, it is required to only need one DBA. Being able to apply for multiple DBAs under a sole proprietorship depends on how many your local/state government will allow. Each filing of a DBA costs money, so registering multiple DBAs may be unnecessary for what you need.
Structure Matters
If your state does not allow you to file for multiple DBAs in a sole proprietorship, then restructuring your business into an LLC, or a different kind of entity may be necessary. Here at GovDocFiling, you can apply for EIN numbers for the following:
- Sole Proprietor / Individual
- Trust
- Non-Profit Organization
- Corporation
- Personal Service Corporation
- Limited Liability Company
- Partnership
- S-Corporation
- Church Controlled Organization
- Estate of Deceased Individual
If you are unsure of which entity to file for based on your situation, GovDocFiling has the experts you need to make sure you apply for EIN’s correctly. Our helpful staff is available 24/7 to answer your questions.