question.jpgIn Business Law

How do I set up a sole proprietorship?

It is relatively cheap and easy to setup a sole proprietorship. While other business forms require the preparation of specific business documents, there is no such requirement for a sole proprietorship. Essentially, you simply have to start your business - purchasing inventory, manufacturing your products, etc. In addition, you generally do not have to formally file any documents with state or local government agencies, nor do you have to pay any fees. But you should be careful on this last point, as there are two exceptions. First, if you are going to be using a fictitious business name for your company, you generally must file that name with the state. Second, you may have to obtain certain licenses or permits, depending on the details of your business (for example, if you will be selling alcohol).