To start a sole proprietorship, first decide on a business name. You can use your own name or create a "doing business as" (DBA) name. Next, register your DBA name locally if you create one. You also need business licenses and permits from state and local agencies to operate legally. Requirements vary, so check with your state and local government offices. You don’t file paperwork to create a sole proprietorship. 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.
Establishing a Sole Proprietorship in Different Locations
Wyoming
- Choose a business name
- Register for a DBA name if desired
- Obtain business licenses and permits
- Understand tax obligations
Rhode Island
- Choose a business name
- File an assumed business name with the city or town clerk
- Obtain licenses, permits, and zoning clearance
- Obtain an Employer Identification Number
What are the benefits of an LLC vs sole proprietorship? One of the key benefits of a limited liability company is that the member’s liability is limited to their investment. A member is not responsible for the debts of the company. A sole proprietor is responsible for the debts incurred by the business.
Operating as a Sole Proprietor
How do I establish myself as a sole proprietor? A sole proprietorship has one owner. To start, 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.