A sole proprietorship has one owner. 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.
Business Naming and Registration
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.
Licenses and Permits
You also need business licenses and permits from state and local agencies to operate legally. For example, you may need:
- Sales tax permits
- Zoning permits
- Food handler permits
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.