— Sole Proprietorships —
Operating a sole proprietorship means that there is only one individual responsible for the company. Formalities associated with other business entities are not required for the sole proprietorship unless you will be operating the business under a name other than your own. So, if you will want to conduct your business under a DBA (“doing business as”), you will have to file an Assumed Name Certificate with the clerk of whatever county the business is conducted.
Unlike the corporate entity, where personal liability is shielded, a sole proprietor is personally responsible for all debts of his or her business. The life-span of the sole proprietorship is determined by the individual operator and the business automatically terminates on the retirement or death of the sole proprietor. The entity is not taxed; business income is reported and taxed through the personal tax return of the sole proprietor.
