~Sole Proprietorship~


Setting you business up as a sole proprietorship is the quickest and easiest way to structure it. If you don't incorporate, and you don't have a partner, you are automatically a sole proprietor. Legally, you and your business are one and the same. As the sole proprietor, your net profit is taxed as personal income tax rates and you are personally liable for any debts or loses you incur.

Sole proprietorship is a good choice for people just starting up a business because it does not have a lot of costs or legal requirements to set up.

As a sole proprietor, you should register your business. Business Licensing differs from state to state. If you are doing business under a name other than your own legal name, you need to get a business certificate or register as a DBA (Doing Business As). This allows your customers, your suppliers, the government, and anyone else your business deals with to know who the real owner of the business is.

A DBA can help you open a business bank account and may reassure some clients that you have lasting power. In most cases, you register for a business certificate at the county clerk's office. In a few cases you register with the state or city. You can call the county clerk to find out.

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