Sole proprietor formalitiesQuestion What are the requirements to becoming a sole proprietor?
Answer There are no formalities required to become a sole proprietor; you simply start your business and begin the operation of that business.
You may have to register your business with your city, town, or county government by filing a simple form stating that you are doing business as the "Quality Dry Cleaners" or some other business name. These municipal or governmental entities may also require that you acquire a business license.
Brain Trust contributor:
Author of J.K. Lasser's Small Business Taxes 2007
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