Choosing a Business Name
To initiate a sole proprietorship, choose a business name. Opt to use your legal name or elect a "doing business as" (DBA) name. If using a DBA, you must register it with your local government.
Obtaining Necessary Permits
You are required to acquire the appropriate business licenses and permits from both state and local agencies to legally operate your business. The specific permits you need, such as sales tax permits, zoning permits, or food handler permits, will depend upon the nature of your business. Because these requirements differ by location, it’s crucial to consult with state and local government offices for accurate information.
Operating Without Formal Paperwork
Unlike an LLC or corporation, no formal paperwork is necessary to establish a sole proprietorship. You can commence your business activities under your own name or a registered DBA. As a sole proprietor, be aware that you assume unlimited personal liability for all debts and obligations associated with your business.