How to Start a Sole Proprietorship
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Choose a Business Name
- When starting a sole proprietorship, your legal name is your default business name.
- Consider registering a Doing Business As (DBA) name to create a separate business identity.
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Register Your Business
- If operating under a different name, register your DBA to make it official.
- Sole proprietorships offer pass-through taxation but lack personal asset protection.
Advantages and Disadvantages of Sole Proprietorship
- Sole proprietorships are the most common and easiest business entity to start.
- They offer convenience and affordability for aspiring entrepreneurs.
Starting a Sole Proprietorship
- Provide necessary licensing, permits, and register your business name.
- Understand taxes, liabilities, and potential for converting to an LLC.
Necessary Documentation for Sole Proprietorship
- PAN card of the proprietor.
- The business and the proprietor are seen as the same entity.
Sole Proprietorship in Delaware
- Suitable for small businesses seeking autonomy and minimal overhead.
- Obtain permits, licenses, and understand legal regulations in Delaware.
Establishing Yourself as a Sole Proprietorship
- Pick a business name and register it; no need to file with the state.
- Consider advantages of autonomy and minimal overhead with legal compliance in Delaware.