Share Legal North Carolina Startup For Sole Proprietorship Forms For Free

Naming a sole proprietorship A sole proprietorship has no existence separate from its owner. Therefore, the legal or true name of a sole proprietorship is its owner's full name. But if the business will be operating under a different name, most jurisdictions require that the name be registered.

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.

Unless a business meets the requirements listed below to be a qualified joint venture, a sole proprietorship must be solely owned by one spouse, and the other spouse can work in the business as an employee.

Sole proprietorships do not produce a separate business entity. This means your business assets and liabilities are not separate from your personal assets and liabilities. You can be held personally liable for the debts and obligations of the business. Sole proprietors are still able to get a trade name.

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).

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, North Carolina doesn't require a ?general? business license at the state-level for Sole Proprietors. So there's nothing to do for this step.