You dream of starting your own business but don’t know what resources you need to make it a reality. You must first decide what type of business entity you would like to set up. A sole proprietorship is for you if you decide to open an unincorporated business with you as the owner. Overall, you must be willing to assume full financial responsibility for all of the businesses transactions. The following is a list of steps to building your sole proprietorship from the bottom up.
Instructions
Understanding the Basics of a Sole Proprietorship
1. Come up with a name for your business and register it. In many places, you can operate a business under your own name without doing any registration. However, if you want to use a trade name make sure it is available and register it.
2. Apply for an Employer Identification Number (EIN) with the IRS. This can be done online in the sole proprietorship section of the website. You can also simply use your social security number if so desired.
3. Apply for an assumed name certificate with the county clerk’s office. This is usually less than $20 it can also be filed and received the same day as your initial request.
4. Set up a business account and or a PayPal account. You will need to take a copy of your assumed name certificate and driver’s license when opening your business account. A basic free PayPal account can be opened online but depending on your monthly transactions you may decide to upgrade to another available account feature.
5. Keep accurate books and records. You will need this information to be readily accessible during tax time.
