Sole Proprietorship Setup

No. The price shown is our service fee for preparing and filing your paperwork. State and federal government filing fees are separate, vary by state, and are paid directly to the filing agency — we show you the exact amount before you confirm anything.

No — a sole proprietorship exists automatically the moment you start doing business under your own name. There's no state formation filing, unlike an LLC or corporation.

Yes, fully — there's no legal separation between you and the business. This is the main reason many sole proprietors eventually convert to an LLC as the business grows.

Not legally required in most cases — you can use your Social Security number instead. Most owners still get one because banks generally require it to open a business account, and it keeps your SSN off business documents.

Commonly once you have meaningful revenue, hire staff, sign contracts with real liability exposure, or simply want the personal-asset protection an LLC provides. There's no fixed threshold — it's a risk decision.

Depends entirely on your industry and location — a general business license, a seller's permit if you sell taxable goods, and any industry-specific license (food service, contracting, cosmetology, etc.). Our setup checklist flags what to check for your state.