Full question:
I am an independent contractor and the company I contract for has told me that I need a business name even though I am a sole proprietor. Is that legal?
- Category: Corporations
- Date:
- State: Colorado
Answer:
The requirement for a business name for a sole proprietor varies by state. Many states allow sole proprietors to operate under their own name without registering a separate business name. However, if you choose to operate under a different name, you may need to file a 'doing business as' (DBA) form. This typically involves filling out a form at your local city or county office, having it notarized, and paying a registration fee that can range from ten to one hundred dollars. Some states also require you to publish a legal notice in a local newspaper.
In Colorado, for example, a person cannot conduct business under a name other than their true name unless they have filed an effective statement of trade name with the Secretary of State (Colo. Rev. Stat. § 7-71-101). If you fail to do so, you may be unable to pursue legal action to collect debts incurred under that name and could face civil penalties (Colo. Rev. Stat. § 7-71-102).
To register a trade name, you must submit a statement that includes your true name, the name you wish to use, a brief description of your business, and other required information (Colo. Rev. Stat. § 7-71-103). Users can search for state-specific legal templates at .
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.