Sole Proprietorship

A sole proprietorship is set up to allow an individual to own and operate a business. A sole proprietor has total control, receives all profits from and is responsible for taxes and liabilities of the business. If a sole proprietorship is formed with a name other than the individual’s name (example: John Smiths Fishing Shop), a Fictitious Business Name Statement must be filed with the county where the principal place of business is located.

Furthermore, as a sole proprietor, a married owner or one in a registered domestic partnership, puts the community property at risk: the community property is liable for the contract obligations of either spouse (or registered domestic partner) incurred during the marriage or domestic partnership.