The correct response is:
James will need to register the business with his local city as the name of his business differs from his own.
In most cases, if a sole proprietor chooses to operate under a name that is different from their own legal name, they are required to register that name, often referred to as a "Doing Business As" (DBA) name, with the local government or city. However, the exact requirements can vary by location, so it's important for James to check the specific regulations in his area.