by Joyce
Before delving into the topic, I think it would be helpful to actually define what is a “sole proprietorship”. It is a business represented by a single individual without benefit of a separate legal entity (for example, corporation).
This business “entity” type tends to be somewhat popular because of the ease in which it can be “formed”…
- Determine if you will use your name (example John Doe) or a fictitious one (JD Photography).
- If you will be using a fictitious one, you will need to register it with your state (or city, if required) by filing a “DBA/Doing Business As” or Tradename form.
- Apply for a FEIN (Federal Employer Identification Number) – go to www.irs.gov. Not necessarily a requirement per se but your accountant and/or tax preparer will thank you later. (If you are a contractor of some sort, you will use this number when filling out W4 Forms).
- Open a separate bank account. Again not necessary but extremely helpful when managing your company finances…your accountant/tax preparer will thank you.
- Acquire any necessary licenses. If your business is one that requires it, make sure you are compliant from the beginning (for example, hair salon requires cosmetology licensing).
As with any business entity type, you should review the pros & cons to decide if that is what is right for you and your business. I thought about going into the pros & cons for this particular business type but decided against it. Instead I have provided a few related topic links that should cover that base pretty accurately.
Disclaimer: I am not an attorney nor is this to be taken as tax or accounting advice. Please seek the advice of a professional for specific insight on your particular business situation.
topic suggested by Malik Alex: Painter & Aspiring Gallery Owner
Related Topics:
Why You Should Never Operate Any Business As a Sole Proprietor
Sole Proprietorship: The Right Business Structure?
by Joyce
Not literally a change, per se, but more like an expansion of focus…
As I have grown as a business owner and grown as a blog writer, I have found that I’d like to write more about growing a small business, as a whole, instead of just the accounting/financial aspect of it. Now, don’t get me wrong… I’ll still write about accounting, finance, tax preparation/planning issues, payroll vs independent contractor issues, etc but going forward, I plan to write more about the journey of building a business and the things/tools that can help us along the way.
So why the change? I started my business 7 years ago with the primary aim of providing affordable accounting solutions to small business owners. That expanded to tax preparation for businesses & individuals…then that expanded to payroll services for small business owners. Now, I haven’t expanded because I think I know everything or can do everything, out of vanity or any desire of my own. In the past, as now, I have expanded because i took the time to listen to my clients & fulfill their needs. As their trusted advisor, I have been asked to point them in the right direction. So I will use this blog, this platform to do just that… point my aspiring entrepreneurs, microbusiness owners, small business owners in the right direction. It is my hope that you will look to my blog & my website as an invaluable resource and that you will visit often.
With my expansion of focus, I look forward to having guest bloggers in the near future. If you have an area of expertise that can help growing small business owners & aspiring entrepreneurs (especially law, marketing & branding)… I want to hear from you!
Cheers!
Joyce
Questions & Comments… as always, are welcomed!
by Joyce
I tend to read a lot (or at least I try to). Lately, I have been reading more thing online instead of off-line but I wanted to remind my fellow entrepreneurs and business owners that learning does not stop when you get a diploma or a degree. Learning continues until, well… you know. Anyway, here are a few of my favorites that I thought would be helpful to others as they begin/continue their journey of independence.
The E-Myth Revisited – Michael E. Gerber
Duct Tape Marketing – John Jantsch
Get Clients Now – CJ Hayden
How To Sell Without Being A Jerk – John Klymshyn
Successful QuickBooks Consulting – Michelle L. Long, CPA MBA (this one is good for consulting in general)
These are books that I have read and re-read…hope you find them as helpful as I have.
Do you have a small business, marketing or branding resource that you have read & refer back to over and over again? Please share your literary choices. Thanks & Enjoy.
