Examples of Sole Proprietorships

sole proprietorship examples near me

You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. https://www.bookstime.com/ We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. LLCs that are classified as S-corps enjoy extra benefits relative to partnerships and LLCs that are disregarded entities.

Most businesses will also need to get a tax ID number and file for the appropriate licenses and permits. In 1998, an employee of ABC Towing in Alaska, poured gasoline on the ground. The state’s laws regarding pollution are very strict, but organizations are generally held to a stricter standard than individuals. The state of Alaska filed criminal charges against both ABC Towing, which was a sole proprietorship owned by Rodney Lewis, and the employee who poured the gasoline on the ground. Grocery stores are similar to bakeries, although you’ll probably need to incorporate if you expand to more than one location.

How Does a Sole Proprietorship Work?

Solo-entrepreneurs may prefer the ease and convenience of operating as a sole proprietor. Together, these businesses employed sole proprietorship 61.7 million people across the country. Sole proprietorships are only good for very low-profit/low-risk businesses.

  • Whether a sole proprietorship is right for you depends on your type of business and the risk involved.
  • The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Blueprint.
  • Additionally, your home office space must be used exclusively for business, so if your “office” is a corner of your kitchen table, you can’t take this deduction.
  • Julia is a writer in New York and started covering tech and business during the pandemic.
  • Starting out as a sole proprietorship makes sense until you need to hire regular help to keep up with increased business.
  • For example, the debts of the sole proprietorship are also the debts of the owner.

If you have a candle-making hobby, you can ask around local stores to see if they’re interested in selling items from local artisans. It’s easy to transition your sole proprietorship into an LLC or a corporation once you start making money and proving yourself in your chosen field. A sole proprietorship is an unincorporated business with one owner. As soon as you embark on a solo side gig, freelance job, or a new business venture, you’re automatically a sole proprietor.

Converting a sole proprietorship to an LLC: What to consider

One day, John, an employee at Amelia’s Tea Shoppe, notices a puddle near one of the settees, but becomes distracted before he can clean it up. After obtaining the equipment he will need, he decides to name his business “A-1 Landscaping,” which will help ensure the business is listed at the top of the Yellow Pages listings. Finally, if you sell goods that are subject to sales tax, you’ll probably need a seller’s permit. This permit is issued by the state and allows you to collect sales tax, which you’ll then remit to the state. The domain name is a unique URL address used to direct traffic to a specific website.

sole proprietorship examples near me