Mark Required Fields In Legal Louisiana Startup For Sole Proprietorship Forms For Free

Differences between LLC and sole proprietorship 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.

A sole proprietor is someone who owns an unincorporated business by himself or herself. However, if you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation.

And, as is the case with other types of business entities, sole proprietors are also subject to self-employment taxes. As a sole proprietor, instead of filing a separate tax return for your business, you report your business income on IRS Form 1040, using Schedule C to report your business profit or loss.

Though no action is required to legally create a sole proprietorship, you should follow four simple steps to start your business: Choose a business name. File a trade name application with your parish or county clerk of court. Apply for licenses, permits, and zoning clearance.

An owner can either be a person or a legal entity that is the legal proprietor of a business. For example, a corporation (a legal entity) can be the owner of one or more companies. A sole proprietor specifically refers to the individual owner (proprietor) of a business being run as a sole proprietorship.

Failure to obtain the correct business licenses and permits for the state of Louisiana can result in fines, notices, or the closure of your business. The Louisiana Economic Development website offers federal, local, and state resources to help you find the specific licenses or permits you may need.