Sole Owner Proprietorship Information

 A sole proprietor is a businessman that operates a business as an individual.  Like other businesses, such as a partnership or an LLC,  a sole proprietor needs to register his business to start operating and to do business  and may use a trade firm business name by registering a DBA (Doing Business As) Certificate.  Thus, if the sole owner is Jane and she is doing business as "Rob them and cheat them," that name would be he doing as trade business name and he would have to file an Doing business as name DBA certificate.

Being a sole owner disadvantage  is that you are liable for business obligations and you don't have as much clout as if you were a corporate business entity such as an LLC or corporation. Also, even sole owners   have to comply with business tax registration, business licenses, or permit rules to make the operation legally acceptable and operable.  

 Though there are costs to forming or maintaining a sole proprietorship such as obtaining a business tax registration and fictitious name, if needed as well as a federal and state employer number if the sole owner is an employer.

Going it alone is good sometimes because it does not cost much to start up.  You only have to pay for a business tax certificate license, a fictitious business name registration and if you are an independent contractor, get an EIN federal tax identification business ID number.

Examples

First example:  Bob is cleaning houses as a sole owner.  He has 2 employees.  One of the employees falls from a spiral stairs and breaks his back.. outch!!.  Bob is uninsured for his business and the employee sues him personally and takes his home and  automobile  for compensation because Bob had not enough cash to compensate him.

Second example:  Bob has a pizza delivery service with several drivers and works on the job himself as well.   He contracts to deliver pizzas for  dominos pizza and sends his drivers for deliveries.  One day a driver has an accident and a pedestrian is hurt.  Pedestrian breaks 5 ribs and sues Bob for everything he has.  Bob loses everything based on respondeant superior legal principal that states that an employer is liable for his employees actions if acted withing the scope of their employment. 

Simply follow the procedures of submitting your business information on this site and we will get your licenses and tax ids for you.

1. Submit an online form
2. Pay for our service
3. Receive your form.

www.businessnameusa.com

In addition to getting licenses, a sole owner must pay taxes on  Income

How to Register a Sole Proprietorship

The first registration should be a fictitious business name registration.  That allows a sole owner to open a business checking bank account in the trade name of the business.   Then a business license or tax registration certificate is required.  That is a flat rate annual tax that a sole owner must pay in advance.  Depending on the type of business, such registration may be required from local, county and state government and certain inspection may have to be scheduled for health, safety and security reasons.   If you have employees, obtain an employer identification number, a seller's license, if you will need to sell taxable items and collect taxes, and in some cases a home occupation license and zoning permit.

Sole propriers must register their business because if they fail to do so, they may be subject to back taxes and other penalties.

Prices range from $5 to $399 depending on your business application procedure and form.  www.businessnameusa.com