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7 Replies Last post: Jul 2, 2008 2:08 PM by Lighthouse24

Sole proprietor operating as two D/B/A's

Jul 1, 2008 4:23 PM

______ 2 posts since
Jul 1, 2008

I am running a sales/service business for about 10 years now and operating under a D/B/A, let's call it ABC Company. Part of my business is retail and serving home based clients equipment. The other part is servicing business clients. My current company name doesn't well reflect the rapidly expanding business client part of my business. I would like to operate under a 2nd name for that portion of my business, call it XYZ Company. I would be operating form the same location, with the same employee's, same phone number, same vendors, same inventory, etc. I would simply like to be able to have this other business name for the purposes of having a more suitable name without dropping my old name.

Can I operate as...

John Doe
D/B/A ABC Company
D/B/A XYZ Company

And still run one set of books, employee's, etc. I am in Maine.

Thank You

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LUCKIEST 7,912 posts since
Aug 6, 2007

1. Re: Sole proprietor operating as two D/B/A's Jul 1, 2008 5:19 PM

Sole proprietor operating as two D/B/A's, Welcome

You have been in business about 10 years. I am guessing (Never Assume) that you have an Accountant.

You should ask your accountant (or a lawyer) that question.

*My guess is yes you can *operate as John Doe D/B/A ABC Company and D/B/A XYZ Company.

BUT NOT ONE SET OF BOOKS. Each company needs to have its own set of books.

Good luck, LUCKIEST

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Santa Fe CPA 67 posts since
Oct 10, 2007

2. Re: Sole proprietor operating as two D/B/A's Jul 1, 2008 5:54 PM

Hello Sole Prop.:

The short answer is yes you can.

The however is, that in order to be able to evaluate the 2 separate functional areas you need 2 sets of books. This will require allocation of manpower as well as any sales to each entity. Only this way will you be able to tell where your costs lie and the profitability of each entiry.

Luckiest is right when he says to speak with your accountant.

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Lighthouse24 2,396 posts since
Oct 10, 2007

3. Re: Sole proprietor operating as two D/B/A's Jul 1, 2008 6:31 PM

I agree that the answer is "yes," and that touching base with an accountant wouldn't hurt. One approach I might consider would be to run the business as John Doe Enterprises dba ABC and XYZ (i.e., two divisions of a single company). As a sole proprietor, there is only one legal entity doing business anyway -- you. The DBAs merely clarify what names you are using to conduct business with the public. Those "companies" are not legal entities in and of themselves.

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______ 2 posts since
Jul 1, 2008

4. Re: Sole proprietor operating as two D/B/A's Jul 2, 2008 8:55 AM

in response to: Lighthouse24

Yes, I do have an accountant who comes in part time, she is looking into this as well but I wanted to do my own homework. I hate to complicate things by running two sets of books. I basically want the second name for the sake of having a different name to better reflects my business. Maybe someday I will want to seperate the two aspects but not now. I don't know how it would work to seperate employee time, inventory, etc. between them if two sets of books were used. Would be nice if it was all one business, with two names. Does this change your answers at all?

Thank You.

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Santa Fe CPA 67 posts since
Oct 10, 2007

5. Re: Sole proprietor operating as two D/B/A's Jul 2, 2008 11:50 AM

in response to: ______

Sole Prop.

It all depends upon the accounting software that you and your accountant use. Other than that, I think that all the advicec given still holds.

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Archangel 40 posts since
Jun 26, 2008

6. Re: Sole proprietor operating as two D/B/A's Jul 2, 2008 12:21 PM

in response to: Santa Fe CPA

As someone who does run more than one company using DBAs I have to agree with most of what is posted above. The only thing I would add is a strong suggestion that you seriously consider incorporating.

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Lighthouse24 2,396 posts since
Oct 10, 2007

7. Re: Sole proprietor operating as two D/B/A's Jul 2, 2008 2:08 PM

in response to: ______

Not being an accountant, I'm not quite sure why two sets of books are recommended. It seems like you could use a production accounting type of system or methodology with one set of books and manage everything just fine (but I could be overlooking something).

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ForumsStarting a Business

This Question is Possibly Answered

Sole proprietor operating as two D/B/A's

Jul 1, 2008 4:23 PM

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