Who Are Some Famous Sole Proprietors?

A sole proprietorship has one owner. Many home-based enterprises are sole proprietorships. Sole proprietors must register the DBA name with their state’s secretary of state to appear professional and competitive. The fee ranges from $10 to $50.
Sole proprietorships obtain any necessary permits required by the county or state. Some get an EIN to separate expenses. While you can file a DBA to use a different name, a sole proprietorship means you and business are one, so no protection.
Sole proprietorships are popular among sole business owners and contractors due to lack of regulation. Most small businesses start as sole proprietorships and either stay that way or expand.

A sole proprietorship’s income is the owner’s. The owner reports income and expenses on their tax return. The main disadvantage compared to LLCs and partnerships is that the owner of a sole proprietorship is personally liable for all debts and costs.
The sole proprietorship is the simplest business structure. If you’re self-employed without a formal structure, you’re a sole proprietor by default. But the owner is liable for any debts. Income earned flows to the owner.
A sole proprietorship does not create a separate legal entity from its owner. It also does not offer liability protection. The business entity and individual are one and the same.

A DBA allows a sole proprietorship to have a business name without an LLC. While simple and inexpensive, it has the same risks as a sole proprietorship. Partnerships can also use a DBA and fictitious business name instead of full legal name or partners’ names.