Restor A Previous Version Of Legal Massachusetts Startup For Sole Proprietorship Forms For Free

Does a small company that operates as a sole proprietorship need an employer identification number (EIN)? A sole proprietor without employees and who doesn't file any excise or pension plan tax returns doesn't need an EIN (but can get one).

You don't need to take any legal steps to form this type of business. If you are the only owner and begin conducting business, you automatically become a sole proprietorship. There is no need to formally file paperwork or submit anything at the federal, state, or local level to be recognized as such.

Step 4 ? Research business license requirements After doing so, you'll want to research any local requirements, those enforced by the county or city where you're doing business. Good news, Massachusetts doesn't require a ?general? business license at the state-level for Sole Proprietors.

There are also no fees involved with forming or maintaining this business type. If you want to operate a Massachusetts sole proprietorship, all you need to do is start working. However, just because it's so easy to get started doesn't mean there aren't some additional steps you should take along the way.

You don't have to file a document to ?form? your Sole Proprietorship with the state. However, there are a few things you may need to (or want to) do in order to operate legally. For example, your business may need a license or permit to operate. And it's best practice to open a separate business bank account.

Hear this out loud PauseA sole proprietor without employees and who doesn't file any excise or pension plan tax returns doesn't need an EIN (but can get one). In this instance, the sole proprietor uses his or her social security number (instead of an EIN) as the taxpayer identification number.