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    7 Replies Latest reply on Jul 2, 2008 2:08 PM by Lighthouse24

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

    ______ Newbie
      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
        • Re: Sole proprietor operating as two D/B/A's
          LUCKIEST Guide
          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
          • Re: Sole proprietor operating as two D/B/A's
            Santa Fe CPA Adventurer

            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.
            • Re: Sole proprietor operating as two D/B/A's
              Lighthouse24 Ranger
              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.