Incorporation Concierge - Sole Proprietorship (SP)

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Why choose a sole proprietorship?

Often accidental entrepreneurs and new business owners begin a business without really intending to start a company. As soon as your enterprise has revenue, it’s a business. With a sole proprietorship, there is no state filing to begin the business. On the flip side, there is no separation between the assets of the business and those of the owner. Therefore the owner’s personal assets can be used to satisfy business debts and liabilities.

Advantages of a sole proprietorship
Typical advantages of a sole proprietorship include:
• Ease of creation. Owners can establish a sole proprietorship instantly, easily and inexpensively.
• No state paperwork. There is no state filing required to create a sole proprietorship.
• No separate tax filing. There is no separate business income tax filing. Business income or loss is reported on the owner’s personal tax return, and any tax is paid at the individual level.
• Few ongoing formalities. Sole proprietorships face few, if any, ongoing requirements or formalities, such as state annual report or ownership meeting requirements as with corporations and LLCs.

Sole proprietorships do not face the same ongoing formalities and requirements that corporations or LLCs face. There are no annual reports to file with and fees to pay to the state, no required annual meetings, etc. Many sole proprietors still will need business licenses and permits, however.
Understanding Business Licenses

Key Benefits

There are no limits to the number of DBAs a business can register. Having multiple DBAs can allow your company to effectively run separate businesses under one legal entity, as long as you stay within any limits posed by your business purpose (if incorporated). When to file a DBA

Keep in Mind

As a sole proprietor, unless you file a DBA (doing business as) your company name will be your personal name. In order to open a bank account, most banks require sole proprietors to have a DBA name. You may also find that potential customers and vendors feel your business is more legitimate with a DBA name.

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