Sole Proprietorship Covington LA

The day you start acting as a business, you become a sole proprietor. It’s that simple.

And while fast growth and certain higher liability types of businesses might make you want to consider other legal structures for your company , some types of enterprises are suited for sole proprietorship in the near and long term.

Here’s how to determine whether becoming a sole proprietorship is appropriate for your company, and how to go about doing it.

Understand the simplicity of it

Sole proprietorship is the simplest form of business entity. It means that you just hang your shingle – literally, figuratively, or both – and go about building your business with little practical effect on what you do. And as long as you’re the only owner of the business, you can continue operating as a sole proprietor.

“If you decide to cut lawns and get a truck and call yourself Rob’s Lawn Service, you’ve set yourself up as a sole proprietorship without really doing anything formal,” says Rob Markworth, partner in the Shanahan Law Group, a Raleigh, N.C., business-law firm. “The truth is that you sort of set up a sole proprietorship by default.”

Register your company with the state

Establishing a sole proprietorship is cheap and uncomplicated, but there is one legal procedure you might have to complete: registering your company with the state, usually through the county in which you live. It only costs a few dollars, though the specific cost varies by state.

Author: The Sloan Brothers

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