How to start a sole proprietorship

How to start a sole proprietorship.  Starting a sole proprietorship is usually one of the easiest routes you can take with your new business. If you’re wondering how to start a sole proprietorship, here are some quick tips.

How to start a sole proprietorship

  • Register your business name, if you’re not using your own name. In many places, you can operate a business under your own name without doing any registration. However, if you want to use a tradename (like ABC Co. or XYZ Management), you’ll probably need to register.
  • Set up a separate bank account, even if you operate under your own name. If you’re using your own name, you can probably just set up a second personal bank account. But, if you want to use your trade name for business, you’ll need a business account
  • See if you need permits to operate. Sometimes, you need to fill out a fictitious name statement or home business permit. Depending on where you live, check with your Small Business Administration or Ministry of Small Business.
  • Keep accurate books and records. You (or your accountant) will need them at tax time.

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