Florida Contractor Practice Exam

Which of the following statements is NOT true regarding a sole proprietor, a/k/a DBA, operating a business in his own name?

1. A business fictitious name filing is necessary.

2. A business Tax Identification Number filing is necessary.

3. Neither A nor B

4. Both A and B

The correct answer is: Both A and B

In the context of a sole proprietor, often referred to as doing business as (DBA), there are specific regulations regarding business registration and taxation. When a sole proprietor operates a business under their own name, there is generally no requirement for a fictitious name filing if they are using their legal name. This means that if the business is simply using the owner's name without any added terms, filing for a fictitious name is not necessary. Conversely, if the proprietor chooses a name different from their legal name for branding purposes, then a fictitious name filing becomes necessary. Regarding the Tax Identification Number (TIN), sole proprietors may need to obtain one, especially if they have employees or operate under a name other than their own. However, they are not strictly required to obtain a TIN if they’re filing as an individual using their Social Security Number. Given this context, stating that both a fictitious name filing and a tax identification number filing are necessary for a sole proprietor operating under their own name is not accurate. Hence, the assertion that both statements are necessary is incorrect.