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Basics4 min read

What is a sole proprietorship and how to start one

Learn what a sole proprietorship is, the advantages and disadvantages, and how to start one.

North Filings
Basics · 4 min read
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Overview

A sole proprietorship is the simplest business structure: one person, no separate legal entity, no formation paperwork. You just start operating.

A sole proprietorship is the simplest business structure: one person, no separate legal entity, no formation paperwork. You just start operating.

Trade-offs

Pros: zero setup cost, simple taxes (Schedule C), full control. Cons: no liability protection — your personal assets are exposed.

For non-US founders, a sole proprietorship is rarely the right choice. An LLC offers far better protection at low cost.

Frequently asked questions

Next step

Ready to form your US company?

Delaware C-Corp or Wyoming LLC — formed in days, not months.

You build the company. We handle the paperwork.

Flat $299 to incorporate. State fees at cost. Start filing in minutes.