Establishing a Sole Proprietorship
If you are the only business owner, the sole proprietorship is officially open whenever you start business activities. Most sole proprietors take steps to get their business rolling.
- Choose a business name
- Register your name with local government
- Obtain any required licenses and permits
- Get an EIN if needed to open a bank account
By understanding all responsibilities involved and building your credit history, you can successfully run a sole proprietorship. Be willing to take on risk to reap the rewards.
Advantages and Disadvantages of a Sole Proprietorship
A sole proprietorship offers simplicity and flexibility. There is full control over the business, but there are disadvantages like unlimited personal liability and limited financing options.
Setting Up a Sole Proprietorship in Delaware
Delaware has its own business laws, and it’s crucial to follow legal steps like obtaining permits and understanding regulations.
- Get an EIN if hiring employees
- Delaware requires a state business license
- Sole proprietorships in Delaware often use the owner’s personal name
Here’s how to start a sole proprietorship in seven steps, from choosing a business name to getting required licensing.