New Venture Lab: Equipping Christian Entrepreneurs

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