How Do You Form A Sole Proprietorship?
Setting up a sole proprietorship takes minimal effort. It’s also the simplest type of business to structure and operate. Find out which local, state and federal licenses and permits you need. Obtain them by contacting the Small Business Administration (SBA). Make sure that you have the right to use your chosen business name by checking with the office of deeds or the appropriate city office in your area. Call the SBA if you don’t know which office to call. This way you can verify that the name has not already been taken. Get a Fictitious Business Name Statement by registering the name of your business in the county where you do business. Apply for an employer ID number with the IRS using Form SS-4. Apply for a state ID number with the Department of Revenue in the state in which you are forming your sole proprietorship. You need to have this number if you pay wages to employees, pay excise tax or have a Keogh retirement plan. Consider getting business insurance to protect your personal
