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Sole Proprietorship Setup · File.Business

Sole Proprietorship Setup

The simplest business structure. DBA registration, EIN, banking, and licensing all in one workflow.

Get your EIN · $99 Need a DBA? Register here →

What is a Sole Proprietorship?

A sole proprietorship is the simplest business structure · a single owner conducting business in their own name or under a registered "doing business as" (DBA) name. Sole proprietorships have no separate legal entity. The owner reports business income on their personal tax return (Schedule C) and has unlimited personal liability for business debts.

When sole proprietorship is the right structure

  • You operate a side business or freelance practice with minimal liability risk
  • You're testing a business idea before forming an LLC
  • You have no employees and no plans to hire
  • You don't carry significant business debt or contracts
  • You want the simplest possible tax filing (Schedule C)

When to upgrade to an LLC

  • Annual profit consistently above $40,000 (S-Corp election becomes useful)
  • You hire any employee or contractor
  • You sign contracts in the business name
  • You take on inventory, real estate, or business loans
  • You want to separate personal and business assets for liability protection
What we'll set up for you

A clean handoff, in four steps.

You give us the basics. We handle the state, the IRS, and the compliance clock so you can focus on the business.

01 · Name + Brand

A name that's actually available.

Real-time check against the state register, USPTO trademark database, and matching domains.

02 · State filing

Filed with the Secretary of State.

We submit your Articles, pay the state fee on your behalf, and return the stamped certificate.

03 · Federal IDs

EIN + the right tax setup.

Federal Employer ID with the IRS, plus state tax accounts when your business needs them.

04 · Stay compliant

Registered Agent + deadline tracking.

Your agent on file in every state, with every renewal and annual report tracked in one calendar.

Pick the path that fits your situation

Most sole proprietors only need an EIN. If you'll trade under a different name, add a DBA. If you want liability protection, the LLC upgrade is $0 service + state fee.

Most common

Just need an EIN

Operate under your legal name, no employees. Get a federal EIN for banking, 1099 work, and tax filing.

$99 · same-day IRS submission →
If using a trade name

EIN + DBA

Operate under a brand name different from your legal name. We register the DBA with your county/state and pair it with an EIN.

$99 DBA + $99 EIN · 2-5 day filing →
Recommended for most

Upgrade to an LLC

Personal liability protection + EIN + Operating Agreement, all in one filing. The right call once you take on clients, contracts, or any business debt.

$0 service fee + state fee →

Pricing

Sole Proprietorship setup
No state-fee markup. DBA, EIN, and permits priced per filing.
Get your EIN · $99
Sole prop · get your EINStart →
How it works

How we deliver, end-to-end.

Four-step path from request to confirmation. State and IRS turnaround varies; our steps run in parallel where possible to compress the timeline.

1

Intake + scope

You tell us what you need through a short intake form (or a call for complex matters). We confirm scope, surface any gating issues (deadlines, missing documents, entity status), and quote any state fees that pass through at cost.

2

Prepare + verify

Our specialists draft the filing, verify entity details against state databases, run internal QA, and route any items needing your sign-off. You see drafts before anything gets submitted.

3

File with the authority

We submit directly to the state Secretary of State, FinCEN, IRS, USPTO, or whichever authority your filing requires. We pay state fees at cost and track the submission identifier in your account.

4

Confirmation + vault

Stamped certificate, IRS notice, or filing receipt arrives in your SOC 2 encrypted document vault the moment we receive it. Next filing deadline auto-added to your compliance calendar where applicable.

Why File.Business

Built on the same infrastructure used by 220,000+ businesses.

SOC 2 Type II audited

Independent annual security audit covering access control, change management, incident response, and data handling. Current report on request.

All 51 US jurisdictions

Every state plus DC plus Puerto Rico - direct filings, not third-party reseller. We hold registered-agent qualifications in every state we operate.

Deadline guarantee

If we miss a filing deadline on a service you pay us to manage, we pay the state penalty. Specific to each plan and the filings it includes.

4.9 from 8,200+ verified reviews

Independently verified by Trustpilot + Google + our own NPS infrastructure. Customer success team within reach by email, chat, or phone.

60-day money-back promise

Change your mind in the first 60 days and we refund our service fee in full. State filing fees pass through at cost and are non-refundable once paid to the state.

E&O insured

Errors and omissions coverage protects you from service errors. Carrier and certificate available on request for enterprise clients.

FAQ

About Sole Proprietorships.

What is a sole proprietorship?
A sole proprietorship is the default structure when one person does business without forming a separate entity, so the business and the owner are legally the same, with no liability separation. It is simple and needs no formation filing, but it leaves your personal assets exposed. We flag when forming an LLC instead is worth it.
Do I need to register a sole proprietorship?
There is no formation filing to create one, but you may still need a DBA to use a business name, an EIN if you have employees, and local licenses or permits, so setup is not entirely paperwork-free. We flag which of these your situation requires so your sole proprietorship operates properly.
What are the downsides of a sole proprietorship?
The big one is unlimited personal liability: because there is no separate entity, business debts and lawsuits can reach your personal assets, and you may also miss out on the credibility and tax options an entity offers. We flag this exposure so you decide whether an LLC is worth forming for the protection.
Should I form an LLC instead?
Often yes: an LLC gives you a liability shield separating business claims from your personal assets, plus more credibility and tax flexibility, for modest cost, which is why many sole proprietors upgrade. We flag the trade-offs so you weigh the simplicity of a sole proprietorship against the protection of an LLC.
Do I need an EIN as a sole proprietor?
Not always: a sole proprietor without employees can often use their Social Security number, but an EIN is required if you hire employees and is useful for opening a business bank account and keeping finances separate. We flag whether you need one so you get an EIN when it actually helps.
How am I taxed as a sole proprietor?
Business income and expenses are reported on your personal return, and you generally owe self-employment tax on the profit, so there is no separate business return but there is added tax to plan for. We flag how the tax works, including quarterly estimates, so a sole proprietorship's taxes do not surprise you.
Do I need a business license as a sole proprietor?
Possibly: even without forming an entity, your city, county, or state and your industry may require a general business license or specific permits, so operating unlicensed can be a problem. We flag the likely licenses for your business and location so a sole proprietorship is not missing one. See business licenses.
Can I convert a sole proprietorship to an LLC later?
Yes: many owners start as a sole proprietor and later form an LLC as the business grows or liability concerns rise, moving the business into the new entity. We flag how the conversion works so you can start simple and upgrade when the protection and credibility of an LLC become worth it.
Can File.Business help me set up correctly?
Yes: whether you stay a sole proprietor or form an LLC, we handle the DBA, EIN, and licensing your setup needs, and flag the liability and tax trade-offs, so you start on the right structure for your situation rather than defaulting into unlimited personal exposure.

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