How to start a Sole Proprietorship Business
sole proprietorship
Perhaps the most popular and simplest way of conducting a business is sole proprietorship. It is a form of business which has one owner and he is the person responsible for its success or failure. However anything that you start doing cannot be termed as a sole proprietorship business. There are certain rules for it the compliance if which is necessary.
The first step involves making a business plan which details everything about your business. It doesn’t have to be a formal plan necessarily but care should be taken to see that it explains what your business is all about, how much it is going to cost and what is the basic course of action of your plan. The complete list of products and services along with the necessity to hire employees or not should be available in the plan.
Secondly you need to conduct an extensive survey on the legal and formal matters involved in setting up your industry. Determine the laws that apply to your business and get them licensed .As a businessman you will be required to pay taxes and you should be aware of all information you should be knowing as a tax payer.
Thirdly, If you want your business to have a legal standing then you should be getting your business licensed. This applies even in cases if you want to conduct a business from home. The legalities involved in local, federal and state tax requirements also need to be adhered to. If you are planning to hire employees for the purpose you need to obtain a federal employment identification number.
Fourth, you need to file a fictitious name statement. This is necessary in cases you name your business which is not your name. For instance-if your name is Rajiv Mehra and you name your business as Rajiv and Sons Drycleaners you won’t need the license. But if you name the business as Best Drycleaners you need to file a statement.
Lastly, all necessary products have to be purchased. If possible get a website, an email address and also a toll free number. Hiring an accountant will help you in calculation of your taxes and a lawyer will come handy to resolve legal matters.