Our guide shows you how to start a Vermont sole proprietorship, register a name, obtain business licenses, and more! Sole proprietorship is a widely chosen business structure in Vermont. Understanding what sole proprietorship entails, its benefits, and potential drawbacks will arm you with the knowledge to determine if this particular structure is suitable for your business.
Step-by-Step Guide
- Choose a business name. Consider uniqueness, memorability, and relevance to your industry. Check availability after brainstorming a few creative and memorable names.
- Register your business name to protect your chosen name and establish a record of your business entity.
- Obtain the necessary permits and licenses.
- As a sole proprietor, you have full control and decision-making authority over your business, but you are personally liable for any debts it incurs.
- Pay Vermont’s state payroll taxes, unemployment tax, and other taxes associated with employment if your sole proprietorship has any employees.
Sole Proprietorship Characteristics
Sole proprietorships offer simplicity but no liability protection. As your business grows, consider forming an LLC to shield your personal assets. This guide outlines the steps to start a sole proprietorship or transition to an LLC in Vermont.