1.

Step 1) Sole proprietorships are the least complicated form of business

designation. Essentially, sole proprietors are self-employed. The first step in
forming a sole proprietorship is choosing your CRAFT. If you are going to be
the name and face of your business, you need to be good at what you do
whether you're a plumber, artist, lawyer, doctor, etc.
2. 2
Step 2) The second step in forming your business sole proprietorship is going
to the county clerk's office and getting your BUSINESS LICENSE. Make
sure you pick out a catchy name to draw people to your business. On the
business license application form, you will have the choice of choosing
between LLC, partnership, corporation, sole proprietorship, etc. Obviously
choose sole proprietorship.
3. 3
Step 3) The third step in forming your sole proprietorship is going to the bank
and opening a BUSINESS BANK ACCOUNT. For example, "John Smith
doing business as (dba) Smith plumbing." While there are many attributes of
sole proprietorships, the biggest drawback is personal liability. I hope this has
been a helpful guide on how to form a sole proprietorship. Good luck!
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A sole proprietorships is a business that is owned and operated by a

single person. Most businesses start out as sole proprietorships, as
 explained by the Small Business Notes website. The reason for this is
because a sole proprietorship is the least expensive and easiest type
of business to start and operate.
Significance
1. A big reason business owners may choose to operate as a sole
proprietorship is the level of control that sole proprietors have over the
business, as explained by the Citizen Media Law Project website.
Owners of a sole proprietor have control over every aspect of the
business, from the company's finances to marketing decisions. Unlike
other business structures, sole proprietors do not have partners or
board members to help make important business decisions. This
means a sole proprietor can react quickly to market trends and other
business conditions, since other owners or partners are not involved in
the decision-making process.
Formation
2. The low cost of forming a sole proprietorship is another reason
why business owners choose to operate as a sole proprietor. Sole
proprietorships begin automatically when one person decides to start
a business. Sole proprietors are not required to file formation
documents with the state or local government to begin the company.
This allows sole proprietors to avoid filing fees that are imposed on
corporations and limited liability companies. For example, it costs a
business $500 to file articles of incorporation with the Illinois secretary
of state, whereas an Illinois sole proprietor does not have to pay a
filing fee to start the business.
Benefits
3. There are a number of benefits that business owners gain by
forming a sole proprietorship. Sole proprietorships are not required to
file taxes as a business with the Internal Revenue Service. Instead,
sole proprietors are allowed to pass the company's profits and losses
directly to their personal income tax return. This allows sole
proprietors to use business losses to offset income gained from other
sources on their personal income tax return, as explained by the
Reference For Business website. Another benefit of operating a sole
proprietorship is that there are no other partners or owners to share
 profits with. This privilege allows a sole proprietor to allocate profits
from the company in any way.
Considerations
4. Sole proprietors may choose this business structure because it is
easy to dissolve, according to the Small Business Notes website.
Unlike corporations and limited liability companies, sole proprietors
are not required to file dissolution documents with the state in order to
dissolve the company. Furthermore, sole proprietors are not required
to pay fees to file dissolution documents with the state. Though sole
proprietorships only have a single business owner, staff may be hired
to help the sole proprietor handle the company's day-to-day affairs.
This allows a sole proprietor to focus on other important issues like
increasing company profits.
Function
5. Sole proprietorships are not required to have a set management
structure, which allows sole proprietors to operate the company in an
informal manner. In addition, sole proprietors are not required to hold
company meetings, record minutes from company meetings or create
financial statements. Sole proprietors are not required to separate the
owner's personal assets from the business assets. Assets from a sole
proprietorship can be taken by the sole proprietor to cover personal
obligations at the sole proprietor's discretion.
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References

Read more: Why Choose a Sole Proprietorship in Forming a Business? |

eHow.com http://www.ehow.com/about_7413378_choose-sole-
proprietorship-forming-business_.html#ixzz1DHsoXX7Z implicity

1. Sole proprietorship is a simple way to do business and simple to organize. In the

organizational structure, the owner of the enterprise manages all business dealings, has
control over how the business works and makes all business decisions. This type of
business is subject to a minimum of state and federal regulation, making it attractive to
many small business owners. Unlike a business organized under a tiered management,
where voting on business decisions may be required, a sole proprietorship has one "go-
to" person who makes all decisions.

Organization
2. While many businesses have several management tiers which may start at the top with a
board of directors, followed by a CEO with several management layers below that
position, a sole proprietorship is run by a singular person, the business owner, without
subsequent management tiers. This is a simple, straight-forward way to manage a
business, leaving no question for employees of who is in charge, or who to go to when
problems arise.

Liability
3. While a sole proprietor is the beneficiary of all the income of the business, she also bears
any loss. This includes any lawsuits that may be filed against the business. With a sole
proprietorship, the law does not distinguish the business and the business owner as
separate. If you are considering a sole proprietorship, you may want to discuss the pros
and cons with your insurance agent. Business liability insurance for a sole proprietorship
may be more costly than insurance for alternate types of business organization.

Ease of Transfer
4. A sole proprietorship has the added benefit of being easy to transfer if the owner wishes
to sell the business, or bequeath it to a family member or friend. This transferability
makes sole proprietorship attractive to a business owner, as well as individuals interested
in buying a business or businesses. A straight-forward transfer of cash and paperwork can
facilitate the quick sale of a business.
 Research
5. Before starting any type of business, research types of business organization to figure out
which one is right for you. The Small Business Administration offers many free tools and
informational booklets that can help you as you start your enterprise. Your state office of
corporations also has a bevy of information that explains each type of business
organization, as well as a list of necessary forms and fees.

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Read more: How a Sole Proprietorship Is Organized | eHow.com

http://www.ehow.com/info_7749283_sole-proprietorship-organized.html#ixzz1DHuENHlz