Establishing a Sole Proprietorship in Washington, D.C.
To establish a sole proprietorship in Washington D.C., here’s everything you need to know.
- Choose a business name.
- Obtain licenses, permits, and zoning clearance.
- Obtain an Employer Identification Number.
- File a trade name with the Department of Consumer and Regulatory Affairs.
Operating a Sole Proprietorship in Washington D.C.
Learn how to Register a Sole Proprietorship in Washington D.C in five steps.
Licensing Requirements in Washington D.C.
In Washington DC, your sole proprietorship may be required to get a Basic Business License (BBL) in order to operate lawfully in the state. If your business does require a Basic Business License, you may obtain it through the DC Business Portal.
Advantages of a Delaware Sole Proprietorship
A sole proprietorship offers simplicity and flexibility. This guide covers starting one in Delaware, from choosing a business name to obtaining licenses. Ultimately, a Delaware sole proprietorship can be ideal for small businesses seeking autonomy and minimal overhead.
Establishing a Sole Proprietorship in Delaware
This article provides an overview of steps to establish a sole proprietorship in Delaware. When starting as a sole proprietor, Delaware offers advantages but has legal requirements to commence operations.
Steps to Setting Up a Sole Proprietorship in Delaware
- Get an EIN if hiring employees.
- Sole proprietor EINs use individual names.
- Get an EIN to report wages if hiring employees.
- Use your Social Security number if solo.
- In Delaware, sole proprietorships need a state business license.
Comparison of Sole Proprietorship and LLC
The biggest difference between a sole proprietorship and an LLC is the issue of limited liability protection.
LLC Advantage Over Sole Proprietorship
The biggest advantage to choosing an LLC over a sole proprietorship is liability protection.
LLC as a Separated Legal Entity
The biggest benefit of choosing the LLC as a business entity over a sole proprietorship is that the LLC, like a corporation, shelters its owners from personal liability because it is considered a separate legal entity, distinct from its owners.
Protection Offered by LLC
With an LLC, lawsuits, debts, and liabilities stop with the separate business entity and do not extend to your own personal property or finances.