It is important to consider doing the following once you have established your sole proprietorship:
- Open a business bank account. Using your fictitious business name and EIN, you should set up a bank account to keep your business and personal finances separate.
- Obtain general liability insurance.
- Report and pay taxes.
Do I need to register as a sole proprietor?
A sole proprietorship is unique because it’s the only business that doesn’t have to register with a state. All other business types – partnerships, limited liability companies, and corporations – must file a registration form with each state in which they do business.
Does a sole proprietor need a DBA in California?
There is no option to file for a DBA on the state level. Under California law, sole proprietors, partnerships, limited liability companies and corporations must file a DBA if they plan to operate under a different name.
How do you register a sole proprietorship business?
4. Register your business in the Bureau of Internal Revenue (BIR)
- Go to the Regional District Office (RDO) where your business is located.
- Fill-up the BIR Form 1901 – Application for Registration (for Sole Proprietor)
- Submit completed registration form together with the following:
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