The smart way to run your business
A sole proprietorship is all yours, but guarding and growing it aren’t all on you. We can help you file a
DBA, get permits, find legal help, and even convert to an LLC.
Some challenges you might face as a sole proprietor
Greater liability
As a sole proprietor, you’re personally liable if the business gets sued or incurs debts.
Taxes
Sole proprietors must report business profits as personal income, and pay self-employment tax.
Difficulties raising capital
It’s harder to attract investors because you have no partners, shares, or membership interests.
Concise & Action-Oriented
Steps to Build Your Business
DBA
Register a business name to manage accounts, run smoothly, and grow your brand presence.
Business Licenses
Get the permits you need to operate legally, stay compliant, and avoid business interruptions.
Liability Protection
Form an LLC to secure your personal assets, limit risk, and protect against business debts.
Legal Advice
Receive expert advice for contracts, compliance, and important decisions that shape growth.
Ready to get your LLC?
Answers to Sole Proprietorship Questions
A quick guide to help you understand the registration process and requirements.
Do I need to use my own name for my sole proprietorship, or can I run the business under another name?
As a sole proprietor, by default, the legal name of your business is your own name. But you can choose to operate the business under another name, known as a “fictitious business name” or “doing business as” (DBA). Most states require you to file an application for your DBA.
Can I open a business bank account with a sole proprietorship?
Even if your business is a sole proprietorship, you should have a separate business bank account to help separate your business and personal income and expenses. This will help you properly report your business income on your personal tax returns. Most banks will allow you to open an account for your sole proprietorship using your social security number.
If you plan on doing business under a fictitious name (“DBA”), most banks will require proof of the filed DBA before they will open the account.
Do I need an EIN (tax ID) if I file a DBA?
Whether your business needs an EIN depends on the structure of your business, and not whether your business has a DBA. Unless it plans on hiring employees, sole proprietorships with DBA don’t have a separate EIN; its tax identification number is the owner’s social security number. Also, single-member LLCs are often not required to obtain an EIN, but one is required if the LLC wants to hire employees or have a separate business bank account. Most other business entities require an EIN.
Do I need to register my sole proprietorship with the government?
You don’t have to register or file any paperwork with the federal government to form a sole proprietorship. If you go into business without setting up another business structure, then you’re automatically considered a sole proprietor if you’re the sole owner.
However, some states and counties may require you to obtain business licenses and/or permits before you can lawfully operate, Also, if you want your business to have a name that’s different from your own legal name, then most states will require you to file for a DBA.
If my business grows, can I change my sole proprietorship into a corporation or LLC?
You can always choose to restructure your business. Whenever you decide your business might be outgrowing its status as a sole proprietorship–whether you’re looking to take on partners or investors, or you want the benefit of different tax options and liability protection–we have resources to help you find the business structure that’s right for you.