Start Your Sole Proprietorship Today

The simplest way to launch your business. Register as a sole proprietor, get your DBA and EIN, and start operating—without forming an LLC or corporation.

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Sole Proprietorship Setup

DBA, EIN, and local registration

Quick & Simple

No incorporation paperwork required

All 50 States

State and local compliance support

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What is a Sole Proprietorship?

A sole proprietorship is an unincorporated business owned and operated by one person. There is no legal distinction between you and your business—you report business income and expenses on your personal tax return.

Many freelancers, consultants, and small-scale entrepreneurs start as sole proprietors because setup is simple and inexpensive. You may still need to register a DBA, obtain an EIN, or comply with local licensing requirements—we help with all of that.

Pros & Cons

Advantages

Easiest and cheapest business structure
No formation paperwork or state fees
Simple tax filing (Schedule C)
Full control and flexibility

Considerations

Personal liability for business debts
Harder to raise capital or get business credit
May need DBA and EIN for banking and contracts

Simple Process

Register in 3 Easy Steps

File Your DBA (if needed)

If you're operating under a name other than your personal name, file a DBA with your county or state.

Obtain an EIN

Get a free Employer Identification Number from the IRS for banking, hiring, and tax purposes.

Open Accounts & Comply

Open a business bank account, get required licenses or permits, and you're ready to operate.

FAQ

Frequently Asked Questions

Do I need to register a sole proprietorship?

Technically, a sole proprietorship exists automatically when you earn income from a business. But you often need to register a DBA if you use a trade name, obtain an EIN for banking or hiring, and comply with local business licenses or permits. We help you with these registrations.

Should I use my Social Security Number or get an EIN?

Sole proprietors can use their SSN for tax purposes, but an EIN is recommended for opening business bank accounts, hiring employees, applying for business credit, and protecting your SSN from exposure. EINs are free from the IRS.

When should I switch from sole proprietorship to LLC?

Consider forming an LLC when you have significant liability exposure, hire employees, take on partners, need business credit, or want to protect personal assets from business debts. Many entrepreneurs start as sole proprietors and convert when the business grows.

How do I pay taxes as a sole proprietor?

You report business income and expenses on Schedule C with your personal Form 1040. You may need to pay estimated quarterly taxes (income tax and self-employment tax). Consult a tax professional for your specific situation.

Can I have employees as a sole proprietor?

Yes. Sole proprietors can hire employees. You'll need an EIN, and you must withhold payroll taxes, pay employer taxes, and comply with labor laws. Many growing sole proprietors form an LLC or corporation once they hire to clarify structure and liability.

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