If you are operating your eBay business as a sole proprietor, and you’re not using your own name as your business name, you should register a DBA “doing business as” name with your state. This is also called a fictitious name.
Most banks require that you register a DBA before they will allow you to open a bank account for your business.
More importantly, establishing and registering a business name helps establish that you are a business with the intent to make a profit in the eyes of the IRS. This is one factor that the IRS looks at when determining if your business is really a business or a hobby for tax purposes.
You do not need to register a DBA if you are incorporated, unless you are operating under a different name than the legal name on your incorporation documents.
For more great eBay tax tips, please read our free special report, Tax Tips for eBay Sellers.
Tags: ebay business
