Basics of a Sole Proprietorship Dothan AL

Sole proprietorship is the quickest and easiest business structure to adopt. If you don't incorporate and don't have a partner, you are automatically a sole proprietor.

Local Companies

Wasco Properties
(334) 671-1551
2431 W Main St Ste 102
Dothan, AL
Inland Southern Management
(334) 792-4872
2767 Montgomery Hwy
Dothan, AL
Allaso
(334) 699-4247
2960 Ross Clark Cir
Dothan, AL
Golden Apple Management Co
(334) 793-0997
2330 Montgomery Hwy
Dothan, AL
Rheingans Carol Lpc Ms Ncc
(334) 671-1280
187 Belmont Dr
Dothan, AL
Ewing Conner & Associates
(334) 793-7695
129 S Saint Andrews St
Dothan, AL
Jg & Associates
(334) 702-7004
3119 Wesley Way
Dothan, AL
Thompson White Inc
(256) 536-5992
2820 15th Ave SW
Huntsville, AL
Lafoy Associates CPA
(334) 821-0051
3120 Frederick Rd
Opelika, AL
Nuclear Regulatory Plant
(334) 899-4685
7388 N State Highway 95
Ashford, AL



Sole proprietorship is the quickest and easiest business structure to adopt. If you don't incorporate and don't have a partner, you are automatically a sole proprietor. Legally, you and your business are the same. As a sole proprietor your net profit is taxed at personal income tax rates and you are personally liable for any debts or losses you incur.

If you run a one-person business that has limited liability, you may not need to bother with the expense and time of incorporation or any other more complex form of organization. Sole proprietorship can also be a good choice for businesses in the start-up phase because it does not have a lot of legal requirements.

As a sole proprietor, you may still need to register your business. Business licensing differs from state to state. Some, like California, require nearly all businesses to register; others have relatively few requirements. If, however, you are doing business as a sole proprietor under a trade name rather than your personal name ("City Architects", as opposed to "John Smith, Architect"), you will likely need to get a business certificate or register as a DBA (Doing Business As). This allows your customers, your suppliers, the government, and anyone else your business deals with to know who the real owner of the business is.


"Doing Business As"

You may choose to register as a DBA even if the law doesn't require you to. A DBA can help you open a business bank account and may reassure some clients that you have lasting power. In most cases, you register for a business certificate (DBA) at the county clerk's office. In a few cases you register with the state or city, but a call to the county clerk will resolve the question. Benefits

  • It's the least expensive and least complicated business structure to form
  • Good for a trial run while you see how your business evolves


Disadvantages

  • Owner is personally liable for debts and losses
  • Offers no other type of liability protection