Add Value Choice Legal Colorado Startup for Sole Proprietorship Forms For Free

Sears, Roebuck, and Company: One of the largest retailers in the United States was started as a sole proprietorship by Richard Warren Sears as a mail order watch and jewelry sales.

In general it's smart to do business under an LLC. It's very inexpensive, even if you do a separate bank account (which it is also wise to do). Both of these especially if this is your main source of income. And it makes taking business deductions less messy, especially if you get started on a proper accounting system.

There are numerous examples of sole proprietors, including business consultants, landscapers, freelance editors, electricians, computer repair people, tutors, financial advisors, photographers and social media specialists. A sole proprietor refers to anyone who is the owner of an unincorporated business.

If you are a freelance writer or photographer, for example, you are a sole proprietor or sole trader. Depending on the industry, state, and local regulations, you may however have to obtain various permits or licenses.

Maintenance: A sole proprietorship is easier to start and maintain than a registered business. With minimal legal costs and no ongoing state requirements, you can simply run your business. This is the case even if you're using a fictitious name, also called a DBA (doing business as).

There are important differences between LLCs and sole proprietorships. The most significant difference is whether you have limited liability for the business' debts and obligations, as with an LLC, or whether the business' liabilities and obligations fall to you personally in the event of a lawsuit or debt collection.

While the sole proprietor is such a simple business classification that Colorado doesn't even require a business registration process or any type of fees, depending on how you use your sole proprietorship and what industry you operate in, you still might have some important steps that need to be taken.

Good news, Colorado doesn't require a “general” business license at the state-level for Sole Proprietors. So there's nothing to do for this step. However, depending on your industry, and where you're doing business, you may need an industry-specific license or a license issued by your municipality (ex: county or city).