In order to begin selling my game, CellZenith, I need to establish myself as a business. I have decided to go as a sole proprietorship. The only alternative would be to go as an LLC. I live in California, where there is an $800 minimum tax on LLC's, so that choice wouldn't work for me. I know from research that starting out as a sole proprietorship is less complicated than making up a "fictional" name for me company. But what am I supposed to call myself? Do I have to use my first and last names, or can I just use my last name? What kind of suffix (if any) can I attatch to my sole proprietorship name and still have it fall under the "non-fictional" name status? For example, do I have to call my business Philbrick Studios, Philbrick Productions, Philbrick Entertainment, or Greg Philbrick Entertainment? Or do I just have to call my business Greg Philbrick? And if I do name my sole proprietorship after myself, without using a "fictional" name, is it true that I don't have to register my business with the state, county, or anyone else? I've heard vague rumors about this, but I still don't understand whether this is legitimate or just a shady way to avoid taxes. Thanks for any assistance! -synth_cat

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In order to begin selling my game, CellZenith, I need to establish myself as a business.

Rules vary by state, and I don't know about CA. You might be allowed to sell a limited dollar value of your stuff without being a registered business, and you might not be required to register if you use your own name. Speak to a business lawyer for your local law.

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But what am I supposed to call myself? Do I have to use my first and last names, or can I just use my last name? What kind of suffix (if any) can I attatch to my sole proprietorship name and still have it fall under the "non-fictional" name status?

From what the ca.gov site says, CA handles that on a per-county registration system with different county agencies handling it. It seems fairly confusing. Call the county offices for clarification, or contact a local business lawyer.

>> Philbrick Studios
>> Philbrick Productions
>> Philbrick Entertainment
>> Greg Philbrick Entertainment

All of these are fictitious names

>> Or do I just have to call my business Greg Philbrick?
Essentially yes.

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And if I do name my sole proprietorship after myself, without using a "fictional" name, is it true that I don't have to register my business with the state, county, or anyone else? I've heard vague rumors about this, but I still don't understand whether this is legitimate or just a shady way to avoid taxes.

Probably.

In my state you are allowed to do a certain dollar amount of business under your own name without any issues. This is normally called the 'underground economy'. These are all the moms who teach piano lessons and earn a few thousand per year for it. You are supposed to pay taxes (federal form 1040SE and a state income tax form) on the money earned this way. A majority of these microbusinesses, like the piano teaching moms, don't file the tax forms and could face problems in an audit.

Also, in my state you can register as a DBA (essentially just getting your fictitious name) without filing as a corporation. It seems to be roughly the same as the CA Sole Proprietor corporation type. Here, the DBA number is used to pay state sales tax, but it isn't recognized as a federal corporation and everything goes through federal self employment tax (schedule 1040SE) and state income tax.

For the best answers you should talk to a local business lawyer who might not charge you for five minutes of questions. You should be able to contact somebody in your county or state offices (here it is the state commerce department, office of corporations) who can answer your questions without needing a lawyer. Additionally your state tax commission would be able to answer questions regarding any state tax issues, and the IRS is usually pretty friendly if you call in the off season.

Good luck!

Your local small business administration office, or even your State government's webpage might say, too. Sole Proprietorships are quite easy, and not so bad if your liability is minimal based on what you do. Now, as far as the name, if you're just Philbrick Entertainment only in Lagunas Beach, then all you need to do is check that there's no other Philbrick Entertainment there (phone book and the state registrar). If you want to sell all over the country and stuff, though, you may have to look into the massively expensive Trademarking (uspto.gov), but I don't recommend that until you need to do it.

I don't know about by you, but at a community college near where I live, they have classes on starting and running businesses for $40 a pop. They're about 1-2 hours for a single night seminar and full of good info and contacts.