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The Sole Proprietorship is the most common of all business structures. They are what makes the world go round and round. The rewards are many. And so are the head aches.
As a "Sole Proprietor" all the responsibility and liability is yours. You are accountable for every aspect of your business venture.
Likewise, ALL the REWARDS are YOURS. Review the "small business" page. What are some of the questions that need answered? Also visit the IRS and SBA web pages for additional information.
What is your business plan? Exactly what do you want to do? Write it down. How do you envision making it happen? Again, write it down.
Build you business on paper first! This will allow you to proceed in a manner that will help ensure nothing is overlooked during your planning and most importantly, your actual start-up.
Things to cover, everything you can think of. Wages, insurance, supplies, vendors, bank accounts, taxes, employees and employee costs. Yes, it does cost you to hire someone besides the normal wages that you will need to pay them. Where will your money come from to start this business and how will you pay it back? How much do you need to start and carry the business until the business is self supporting? What are your plans for quitting the business in the future? Put everything into a business plan that you can refer to often. It does not need to be fancy but it MUST be practical and HONEST.
There are other items to cover, especially if you will be seeking funding from an outside source. Such things as why, where, and how, would need to be discussed in your plan. Normally they would be the reason for you wanting to start your own business in the first place. Dissatisfied with what currently exist and you have a better way to do it, right?
Review your plan carefully and then start working it. Get your permits, licenses, insurance and location. Set up your bank accounts and any vendor accounts that will be needed. Get your utilities and telephones turned on. Get your business vehicle and insurance for it. Get your building set up the way you want it so that when customers come in they see you are serious and in it to provide them the service or product they came in for.
If your business is something totally new to what you have been doing, or really have no first hand knowledge, then read anything and everything you can get your hands on to help you understand the principals.
Talk to others who are providing the same services or product as much as you can and learn from their experiences. Visit the web sites that cater to your profession. They will probably have available, statistical information you can use to fine tune your business plan and make you aware of business wide trends relating to your business.
Know what the IRS has to say about your particular business profession for earnings and get their literature. They are an invaluable asset to your success.
I personally wish you the very best of good fortune in your business venture. There are very few greater rewards in life than having a successful business that matured from your dreams and dedication.
A very strong recommendation… Look at the requirements for the formation of a Limited Liability Company! Many advantages over that of a Sole Proprietor form of business.
A very good resource on business structures from a tax bill point of view is Wayne Davies. Visit his site "You Save On Taxes" for a goldmine of information on how to save what you earn in your business.
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