A sole proprietorship is formed when a single owner establishes an unincorporated business and operates that business as an individual.
Steps to Start a Sole Proprietorship
- Choose a business name.
- File a business certificate with the city or town clerk’s office.
- Obtain necessary licenses, permits, and zoning clearance.
- Obtain an Employer Identification Number (EIN).
Understanding the steps to legally start and operate your sole proprietorship is crucial. If you need guidance, consulting a small business lawyer can provide valuable advice.
Sole proprietorships offer speed and low cost of setup, appealing to those who want to start their own business quickly with minimal startup costs. However, unlike LLCs, they do not offer liability protections or additional tax flexibility.
Important Considerations
- No paperwork is required to form a sole proprietorship through the Massachusetts Secretary of State.
- This guide explains the process and filings needed to start your Massachusetts sole proprietorship.
- Over 70% of small businesses in Massachusetts are set up as sole proprietorships.
- For legal recognition and readiness for operation, begin with a clear business plan and secure your business identity with an LLC name search if necessary.
- Depending on your chosen business entity, you might need to complete different registration forms and pay fees.
Note: Seeking professional advice from lawyers, accountants, or business consultants can prove beneficial.