Simplifying Business Structures: Managing Multiple DBAs Under One Sole Proprietorship
Navigating the complexities of small business management and tax filing can be challenging, especially when you’re running multiple ventures with varying branding needs. For entrepreneurs in Oregon, like myself, strategizing an efficient and compliant business structure is crucial.
Currently, I manage an independent author business as a sole proprietor with a “Doing Business As” (DBA) designation. As I embark on launching a second venture—an artisan business focused on selling fantasy-themed crafts inspired by literature—I’m seeking a method to differentiate this new brand while keeping the administrative burden light.
Since these businesses will often be showcased together, such as at local markets where books and related crafts are both viable offerings, I am considering the feasibility of establishing a primary umbrella DBA. This structure would allow me to operate both ventures under this main DBA, simplifying my tax obligations while maintaining distinct market identities for each business.
To illustrate, imagine a setup like this:
– Primary DBA: Bookish Creations
– Sub-DBA for the author business: Author Jane Smith
– Sub-DBA for the craft business: Smith Designs
Ideally, this approach would mean that only one Schedule C tax form is filed under the umbrella DBA, thanks to consolidated bookkeeping—although each venture would maintain its own financial records. This could streamline operations without sacrificing brand independence.
Of course, there’s the consideration of forming a Limited Liability Company (LLC), but given the current modest earnings, remaining a sole proprietorship is both economical and doable. Before committing to this strategy, I am seeking confirmation that such an arrangement is legally sound and aligns with best business practices.
I welcome any insights or guidance from fellow entrepreneurs who have navigated similar challenges. Your expertise could be invaluable as I move towards simplifying my business operations in a compliant and efficient manner. Thank you for your support!
2 Comments
Thank you for sharing your journey, Jane! It’s inspiring to see your creativity manifest in both your author business and artisan craft venture. Your approach to consolidating under an umbrella DBA is indeed a smart way to streamline operations while maintaining distinct brand identities.
One thing to consider is the potential for customer perception. Having a unified brand like “Bookish Creations” can enhance recognition and create a cohesive experience for customers who may be interested in both your books and crafts. However, ensure that your branding clearly communicates the unique aspects of each venture to avoid confusion.
Additionally, while remaining a sole proprietorship offers simplicity, you might want to stay updated on any changes in local business regulations that could affect your DBA structure or tax filings. Furthermore, if your earnings begin to rise beyond a certain threshold, it could be worth revisiting the idea of forming an LLC, which can provide added liability protection as your businesses grow.
Lastly, consulting with a tax professional or a business attorney can provide clarity on your specific situation and ensure compliance with state regulations. Wishing you all the best as you embark on this exciting new chapter!
Great post! Your approach to structuring multiple DBAs under a single sole proprietorship is quite common and can be very effective for simplifying management and tax filings, especially when the ventures are closely related or synergistic. Just a quick note—while Oregon allows for multiple DBAs under a sole proprietorship, it’s important to ensure that each DBA is properly registered and that your local county records your businesses accordingly.
Additionally, consolidating financials under one Schedule C with separate bookkeeping for each DBA is a solid strategy, but be mindful to keep detailed records to distinguish income and expenses for each brand, particularly if you plan to seek funding or sell one of the businesses in the future.
If your ventures grow or if liability becomes a concern, transitioning to an LLC can provide more protection. But given your current setup and goals, your plan sounds well-aligned with best practices. It’s always wise to consult with a local business attorney or tax professional familiar with Oregon regulations to ensure full compliance. Wishing you success with both your author and artisan endeavors!