Starting a Sole Proprietorship in South Carolina
To start a sole proprietorship in SC, decide on a business name. You can use your own name or create a separate "doing business as" (DBA) name. Next, register your DBA name locally. You also need business licenses and permits from state and local agencies to operate legally. Requirements vary by location, so check with your state and local government offices. You don’t need to file paperwork to create a sole proprietorship like with an LLC or corporation. You can simply start doing business under your name or registered DBA. As a sole proprietor you have unlimited personal liability for debts and obligations of the business.
Understanding Sole Proprietorship in South Carolina
While sole proprietorships have some advantages, there are also disadvantages you should be aware of. Sole proprietorships don’t protect your personal assets. On the other hand, if you form an LLC, your personal assets are protected in the event of a lawsuit.
Setting Up a Sole Proprietorship
- A sole proprietorship has one owner.
- A partnership is a sole proprietorship owned by two or more people. The partners share profits, losses, liability, and responsibility.
A partnership agreement can be very helpful if there is ever a dispute among the partners. By addressing requirements like understanding taxation obligations, obtaining necessary licenses and permits, and acquiring a DBA name, you’ll pave the way for a successful launch of your North Carolina Sole Proprietorship.