How to Form a Sole Proprietorship

The simplest kind of business to form is a sole proprietorship. The government considers any business started by a person a sole proprietorship. Permits and Licenses Figure out what kind of permits and licenses you'll need to operate your business at the local, state, and federal level. Contact your local small business administration (SBA) if you need additional help determining what kinds of permits and licenses you'll need and where to get them. Naming your business Check with your local municipality and state to see if you can use the name you have chosen for your company. Some states have laws requiring you to register your company name. Again, the SBA can be an additional source of information. Register your name Create a DBA (doing business as) document, where you will be doing business. This will need to be done if you plan on using a name other than your personal name for your company. Doing this will allow you to set up banking accounts for your company under your company's name. Employer ID number Register for an employer ID number (EIN) with the Internal Revenue Service. This is necessary if you plan on having employees. You'll also need a state ID number from your state tax board. Business Insurance In order to protect your personal assets from business debts and liabilities, you may want to consider getting business insurance.