Steps to Establish a Sole Proprietorship
- Choose a Business Name: Decide on using your name or creating a DBA name.
- Register Your DBA Name: Register it locally.
- Obtain Licenses and Permits: Get necessary permits for legal operation.
Sole Proprietorship Setup in Massachusetts
To establish a sole proprietorship in Massachusetts, you can start doing business under your name or a registered DBA without formal registration. Check local requirements for licenses and permits.
Comparison of Sole Proprietorships and S Corporations
- Sole Proprietorships:
- Offer simplicity but expose owners to unlimited liability.
- Subject owners to self-employment tax on all income.
- S Corporations:
- Provide limited liability protection but require a more complex setup.
- Allow pass-through taxation, potentially saving on self-employment taxes.
Establishing Yourself as a Sole Proprietor
- Choose a business name, either your own or a DBA.
- Register your DBA name locally.
- Obtain necessary licenses and permits for legal operation.