How Much Does It Cost To Register A Sole Proprietorship?
Anyone can start a sole proprietorship. It is the simplest form of business ownership and you even choose to start it with your own name. If you do not want to use your own name, you can choose a unique name and an address for your small business. The name should not be similar to the name of another registered company.
To apply for sole proprietorship online, you will have to pay a fee which will be stated on the online registration form. The amount of fee will depends on your country. Depending on where you are staying, every country and state has its own rules and regulations. Some country or state does not require any filing of legal documents for the setting up a sole proprietorship.
Next, if your sole proprietorship is not named after your own legal name, the state will require you to file a statement stating the location of your business. Depending on your place of residence, the fees for filing the statement may differ from state to state.
You will also need to apply for a business license and obtain permission to operate your business from your home or whatever place you want. You may be required to pay a fee for the occupancy permit for your business and this will also depends on your location and your state government requirement. Some state agencies might also require you to pay a retail seller’s permit depending on your type of business. You will also need to set up a business checking account for your small business.
Once all the above have been taken care of, do not forget to apply for EIN or the Tax ID number. A sole proprietor needs to apply for EIN:
- If the owner intends to hire employees.
- To have a Keogh or Solo 401(k) retirement plan.
- When the owner wants to buy or to inherit an existing business.
- If the owner wants to incorporate or to form a partnership or limited liability company.
- When the business owner intends to file for bankruptcy.
- Some banks may require your company’s EIN number for you to open a bank account for your business.
