Highlight In Legal Kentucky Startup For Sole Proprietorship Forms For Free

The legal form of organization in business plan is used to decide how the organization will function, how roles will be arranged and assigned, and how relationships will work. These organizational steps should take place at the beginning of the business formation.

Sole proprietorships are the easiest to form since they don't need to file paperwork with the Kentucky Secretary of State as long as they are offering products and services under their name. Once you start operating as a sole proprietor under another name, you need to file a Certificate of Assumed Name.

A sole proprietorship is an unincorporated business that has just one owner who pays personal income tax on profits earned from the business. Many sole proprietors do business under their own names because creating a separate business or trade name isn't necessary.

Generally, sole proprietors own small or part-time businesses with no employees. It costs nothing to establish a sole proprietorship. Unlike a sole proprietorship, an LLC is a hybrid of the partnership and corporate forms that allows the liability protection of a corporation with the tax advantages of a partnership.

Unlike a Sole Proprietor which is an unregistered business entity using for the most part the single owner's name, a Single-Member LLC registers the business entity with the state and separates the personal assets of the single owner from that of the business.

For more information, read our article on how to start a business in Kentucky. Choose a Business Name. File a Certificate of Assumed Name With Your County. Apply for Licenses, Permits, and Zoning Clearance. Obtain an EIN. Next Steps for Sole Proprietors. Consulting a Small Business Attorney.