Starting a Sole Proprietorship
Most small businesses are sole proprietorships, because this type of business is the easiest and least expensive way to start into business. Here is the information you need to start a sole proprietorship:
A sole proprietorship (or “proprietorship”) is a form of business in which an individual starts a business under his or her own name. In a sole proprietorship, you are the business; that is, the business is not a separate entity from you.
If it sounds simple, it's because it is. The sole proprietorship is the oldest and simplest form of business ownership. To start a sole proprietorship, all you need to do is:
- Create a business name and decide on a location for your business
- File for a business license with your locality, and get permission from your locality if you want to operate your business from home
- Set up a business checking account.
You don't need to prepare any legal documents because you are not in business with someone else, and you don't have to set up an elaborate business structure: no board of directors, no meetings, no minutes, no complicated accounting for shares in the business.
If you decide to set up your new business as a sole proprietorship, follow the Startup Steps and you will be ready to go.