A sole proprietorship is the most simple type of business to start and operate. No state registration is necessary, but you must get all the licenses and permits you need. As the owner of the company, you are liable for its debts, lawsuits, taxes, and other obligations. Sole proprietors account for 70% of all businesses in the United States. This structure gives the owners total control over the company’s revenue, and it is also relatively easy to start.
If you’re just starting out, you may feel like you’re working for the government; however, you need to make sure that your business is legally registered in your jurisdiction. There are a number of steps you need to complete, and the checklist above can help you get started. Once you’ve completed this checklist, you can register your business and start operating under your own name. Be sure to keep track of all your expenses, though!
You can use a checklist to help you formalize your business. While this checklist applies to British Columbia, it’s nearly identical for other jurisdictions. In fact, it’s easy to think you’re working for the government, but it’s important to remember that most of these steps don’t require you to file with the government. You can even operate under your own name and continue operating your business under your name.