2:30 PM
Lanee' Blunt
By Lanee' Blunt
The documents needed to
start a sole proprietorship will depend on the type of business you’re
registering. There is no legal distinction between the owner and the business,
a fictitious name “Doing Business As” or DBA is required if you want your
business to have a different name than your own name. A sole proprietorship is
a business owned by one person.
Service Business
If you are planning to have
services company and you will not have any employees, for example a
consultant. You will not be collecting
any sales tax. You will have to fill out a registration form for a “fictitious
name” or “Doing Business As” DBA. In some states, a sole proprietorship is
registered with the state government or the county clerk’s office. Appropriate
identification will be required such as your driver’s license or your state ID
card.
Service Business with Employees
Register your business as a
DBA with your state government or county clerk’s office. If your business is a
service business and you have employees on your payroll you must obtain an
Employer Identification Number (EIN). The EIN is obtained from the federal
government by filling out the form and sending it back to the IRS. When you
apply for your DBA you will receive the information to apply for your EIN or
call the U.S. Internal Revenue Service.
Register your business as a
DBA with your state government or county clerk’s office. Obtain an EIN from the
IRS. The documents needed for a sales business with employees are a “Doing
Business As” DBA and an EIN. You will also need a Sellers Permit if you are
selling products. You must collect sales taxes. The document required for a seller’s
permit or vendor’s license is a state ID card or driver’s license with your
application. Apply for your seller’s permit at least three weeks before opening
your business from your local state taxation department or state tax
commission.
Restaurant
You will have to register
your business as a DBA with your state government or county clerk’s office.
Obtain an EIN from the IRS. The
documents needed for a restaurant with employees is a “Doing Business As” DBA,
EIN, food service license and seller’s permit. You will also need a Sellers
Permit to collect sales taxes from customers. Depending on the type of food
establishment you will need a food service license, and the permit is handled
either by your state or your Local Health Department.
Reference
SBA: Business Licenses and
Permits
Entrepreneur: The Skinny on
Sole Proprietorships; Lydia
OSBDC: How to Form a Sole
Proprietorship
Related Articles
Starting a Sole
Proprietorship
How to Open a Restaurant
with a Sole Proprietorship or LLC
http://www.smallbusinessbizcom.blogspot.com/2011/10/how-to-open-restaurant-with-sole.html
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