Changing the name of a DBA clarification

[trberkovich]

I am still confused about the process to change the name of my son's DBA.  Based on the expert responses, my understanding includes the following:

1.  For a personal income tax return (not business), Schedule C is required even if no expenses are claimed for the DBA

2.  My son has no employees.  Therefore, he does not even need to cite the DBA in Schedule C.  His social security number is sufficient.

3.  If the DBA is cited in Schedule C, the current name and TIN must be specified.

4.  To change the name of the DBA, my son must apply to the state of Texas and not a federal agency.  If so, could an expert provide the appropriate contact information.  Is a fee associated with the name change?  If yes, what is the cost?  If the cost is significant, I don't think that we will change the name.

5.  Does my son need to do anything else or know anything else in regard to changing the name.

[RobertB4444]

A DBA is just a name under which your son can do business.  Registering it in the state of Texas means no one else can call their business the same name in Texas.  It has nothing to do with his federal taxes.  He needs to register as a corporation or partnership or something to effect his federal taxes.

Here is an FAQ for registering a DBA in Texas.  The filing fee is $25.  Here is the form to file.

And, again, none of this has anything to do with his federal tax return.

@trberkovich 

[trberkovich]

I am not concerned about the state issues.  I'm not sure why an expert raised this issue.  I would have preferred a way to choose a good name for the DBA which better reflects the activities performed in the DBA.  I still do not understand what we need to do to change the name for the federal income tax return.  I would appreciate any guidance that you may be able to offer.   Thanks

[DawnC · Accepted solution]

What kind of business does your son have?  Is it a sole proprietorship or an LLC (single member or multi-member).   If it is a sole proprietorship or a single member LLC, he can file a Schedule C with his personal taxes to claim any income and expenses he had.   He can mark the box that says he uses his name, SSN, and home address for the business.   

The name change won't affect his tax return.   

Use Schedule C (Form 1040) to report income or loss from a business you operated or a profession you practiced as a sole proprietor.  If the business had no income or loss; no Schedule C is required.   

[trberkovich]

Income in 2024 has already posted to the DBA (with TIN) with the incorrect name.  We would prefer to use a DBA on Schedule C but with a correct name.  How can we change the name of the existing DBA for the federal taxes?  Texas has no state income tax.  Or if we can't change the name, should we just use the incorrect name of the DBA (with TIN).?  Some income may have also posted to a checking account outside of the DBA.  If so, can Schedule C have two records, the DBA and cash to a checking account?

[PatriciaV]

If you have income reported to a TIN, then that tax identification number should be used on Schedule C of the individual tax return. The business name on Schedule C can be changed without any other notice sent to the IRS.

Combine all income for this business on one Schedule C, no matter where the money was deposited. However, if you received any tax forms (like a 1099-MISC) for more than one tax ID number, then you would need to include a separate Schedule C for each tax ID number. Use the correct name that is associated with that tax ID number on Schedule C. Again, this only applies if income was reported to more than one tax ID number. If the income was only cash deposited to a bank account, report that income on the business Schedule C.