If you’re trying to decide if a sole proprietorship is the smartest choice for your business, look through these frequently asked questions. To find out the best options for your business, ask one of our attorneys today.
How Do I Become a Sole Proprietor?Zachary Hanby2021-01-28T14:16:42-05:00
From the moment you start doing business, without an official business entity, you are a sole proprietor. As implied by the name, a sole proprietor is the only owner of the business, so there can be no shareholders or co-owners. To do business lawfully, some states requires licenses, fees, or permits from sole proprietors. To know what’s required of you as a sole proprietor, it’s best to speak with an attorney so you can be sure your business is on the right path.
How do I register my business name as a sole proprietorship?Zachary Hanby2021-01-28T14:17:23-05:00
When your business is operating as a sole proprietorship, it is operating under your personal name. Whatever name you want for your business would have to be registered as a DBA, or doing business as. A DBA is the business equivalent of a nickname, in that it informs the state of another name your business is operating under. Another way to secure a name for your business is to create an official business entity, such as an LLC or corporation.
Can I change my sole proprietorship into an LLC or corporation?Zachary Hanby2021-01-28T14:18:05-05:00
Yes, you can absolutely form an LLC or corporation our of your business. Because a sole proprietorship is so limited, many business owners create LLCs or corporations so they can add co-owners, distribute shares, or go public. Contact our office to get the process started for you right away.
How do I open a business bank account?Zachary Hanby2021-01-28T14:18:30-05:00
You may have some trouble opening a business bank account without an EIN. Most sole proprietorships don’t have an EIN because they aren’t hiring employees. If you want to remain a sole proprietorship, you can often open a separate bank account, dedicated to your business, with your social security number.