These days, practically everyone is in business, even if you have a job. The Internet has really brought home-based businesses into their prime.
Speaking with a banker recently, at my home-based business, she remarked, “As recently as 5 or 6 years ago, our bank looked on home business with a jaundiced eye. Today, so many legitimate businesses, making serious money, are run from someone’s bedroom or dining room.”
And she’s right. The climate has changed. If you’re running a business, what should you do about the name?
Too often, people start with something that just seems like a casual hobby, and it takes on a life of its own. They never really name it, just use their name. And soon, the business IS their name – or some derivative of it.
You say, “I’m not going to develop a major brand. So, why do I care?”
You’re devoting more and more time to your business, as it gets ever more rewarding – financially. As it succeeds, at some point, perhaps not soon, but someday, you will want to sell it. If your business is all wrapped up around you and your name, will you sell your name with the business? You certainly can’t sell it without your name.
Then, when you want to start another business, you can’t use your own name. That’s just one reason – and I’ve seen this come up often.
Naturally, if you get sued, or commit a crime, with your name on the business, it could become worthless.
Besides, when you become hugely successful, wouldn’t you love to have some privacy? Do you really want everyone aware of where you are and what you buy, eat, wear? I mean think about it. Every time Debbie Fields signs a credit card receipt, she’s recognized.
Of course, you may actually crave that kind of attention. So, maybe I’m stepping out of line.
But your TaxMama … well, you notice it’s not called EvaRosenberg.com (or is it?).
And remember, you can find answers to all kinds of questions about business issues and other tax issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
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