In the context of a sole proprietorship operating under a name different from the owner's legal name, the correct response would typically be:
James will need to register the business with his local city as the name of his business differs from his own.
In many jurisdictions, if a sole proprietor operates under a business name that is not their own legal name, they are often required to register that name, commonly known as a "Doing Business As" (DBA) registration, with the local authority (such as the city or county). However, the specific requirements can vary by location, so it's important for James to check the regulations in his area.