Sole Proprietorship Set-Up Checklist
Question
What steps do I need to take to set up a sole proprietorship?Answer
Step 1: File an Assumed Business Name with your county clerk
- Must be filed in the county the business resides in
- Also known as a DBA (Doing Business As) certificate
- County clerks are usually in the County Courthouse
- Be sure to get either a standard or certified copy as needed
- Typical cost is between $10 and $30
Step 2: Open Business Bank Account
- Verify what documents are needed to open a business account with your bank
- Typical documentation includes: DBA certificate (some banks require a certified copy), Social Security Number (for sole proprietorship) and Drivers license / Photo ID
Step 3: Check if your services or products are subject to Sales Tax (some states do not have sales tax such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon
Step 4: Register for Sales Tax Permit (if you are subject to Sales Tax)
- May also be called Seller's Permit, Resale Permit / License, Certificate of Authority, Use and Sales Tax License / Permit, Sales and Use Tax, Application to Collect / Report, Tax Transaction Privilege
- You can often register on-line
- Registration includes either faxing or mailing a signed application
- February 14, 2014
- Forming a Company
- Ask a New Question
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