In a Proprietorship concern, is it better to use one's own name or create some other name eg.xxx consultancy

Question

Own name advantage - you do not have to have separate bank acct. & other formalities.
What are the disadvantages?

Answer 1

Don't worry about bank account problems, they are very meagre. Concentrate on choosing a good name for the business if it helps. I think no body would mind having tens of bank accounts if business/consultancy is flourshing.

Even otherwise, it is always advisable to have separate business and personal accounts.

Select a good name for your concern / consultancy if name helps you.

Answer 2

This is not at all a problem, if you are having current account on bank in your company name and you are getting a cheque in your name or other name , you can claim that cheque with using & co option,

for example your companys name is lakshmi agencies, and your name is ramesh, you are getting cheque in your name or some other name, then just write down & co in crossed line instead of ACC payee only , then you can claim that cheque in to your current account

Answer 3

For liability purposes, If both names are the same it's harder to prove that you were intending to sign documents on behalf the entity not the person.

Answer 4

If a person has no goodwill he can open with other name to gain new goodwill. It will also save him from tax liability.

Answer 5

no.........you must write your name and proprieto of XYZ
cos when any govt.or income tex dept.check comes they dont write ll company name on it...they write your name and account number.