Photo: Microsoft Copilot / UnsplashBusiness Formation
Sole Proprietorship
A sole proprietorship is the simplest and most common way to start a business. It requires no formal registration, making it quick and cost-effective to launch.
Why entrepreneurs choose a sole proprietorship
As the sole owner, you have complete control over operations and decision-making, and there's no separate business entity to register or maintain. It's a common starting point for freelancers, consultants, and small side businesses testing an idea before formalizing it.
No liability protection
Unlike an LLC or corporation, a sole proprietorship creates no legal separation between you and your business. That means you're personally liable for any debts or legal issues the business takes on — your personal assets aren't shielded. Profits and losses are taxed as personal income, which simplifies filing but doesn't reduce your exposure.
Important considerations
Depending on your city and state, you may still need a local business license or a DBA ("doing business as") filing if you operate under a name other than your own. Many sole proprietors later convert to an LLC once liability protection becomes a priority.
Start Your Sole Proprietorship in 3 Easy Steps
Tell Us About Your Business
Let us know what you're doing and whether you plan to operate under your own name or a DBA.
We Help You File What's Required
We prepare any DBA filing or local licensing paperwork your city or state requires.
Get Set Up to Operate
We help you get an EIN if you plan to hire or open a business bank account, so you're ready to go.
Ready to get started?
Answer a few questions about your situation and Mary's team will prepare your documents for review.
Have Questions? Talk to an Attorney.
Get peace of mind with expert legal guidance tailored to your needs.
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