Sole Proprietorship

One of the first decisions that you will have to make as a business owner is how the company should be structured. This decision will have long-term implications, so consult with an accountant and attorney to help you select the form of ownership that is right for you. In making a choice, you will want to take into account the following:

• Your vision regarding the size and nature of your business.
• The level of control you wish to have.
• The level of structure you are willing to deal with.
• The business' vulnerability to lawsuits.
• Tax implications of the different ownership structures.
• Expected profit (or loss) of the business.
• Whether or not you need to reinvest earnings into the business.
• Your need for access to cash out of the business for yourself.

Companys that are Sole Proprietorshis are owned by one person, usually the individual who has day-to-day responsibilities for running the business. Sole proprietors own all the assets of the business and the profits generated by it. They also assume complete responsibility for any of its liabilities or debts. In the eyes of the law and the public, you are one in the same with the business.

Advantages of a Sole Proprietorship

• Easiest and least expensive form of ownership to organize.
  
• Sole proprietors are in complete control, and within the parameters of the law, may make decisions as they see fit.
  
• Sole proprietors receive all income generated by the business to keep or reinvest.
  
• Profits from the business flow directly to the owner's personal tax return.
  
• The business is easy to dissolve, if desired.
  

Disadvantages of a Sole Proprietorship

• Sole proprietors have unlimited liability and are legally responsible for all debts against the business. Their business and personal assets are at risk.
  
• May be at a disadvantage in raising funds and are often limited to using funds from personal savings or consumer loans.
  
• May have a hard time attracting high-caliber employees or those that are motivated by the opportunity to own a part of the business.
  
• Some employee benefits such as owner's medical insurance premiums are not directly deductible from business income (only partially deductible as an adjustment to income).

go to File directory of IRS.GOV and search for the below listed File names.
(I cannot post direct links to the files because of a limitation in the service agreement of squidoo)

• Income Tax
  • f1040.pdf : 1040, U.S. Individual Income Tax Return
  • f1040sc.pdf : Schedule C (Form 1040), Pofit or Loss from Business
  • f1040sce.pdf : Schedule C-EZ (Form 1040), Net Profit from Business
• Self-employment tax
  • f1040sse.pdf : Schedule SE (Form 1040), Self-Employment Tax
• Estimated tax
  • f1040es.pdf : 1040-ES, Estimated Tax for Individuals
• Social security and Medicare taxes and income tax withholding
  • f941.pdf : 941, Employer's Quarterly Federal Tax Return
  • f943.pdf : 943, Employer's Annual Federal Tax Return for Agricultural Employees
  • f944.pdf : 944, Employer's Annual Federal Tax Return
  • f8109b.pdf : 8109-B, Federal Tax Deposit Coupon (to make deposits)
• Providing information on social security and Medicare taxes and income tax withholding
  • fw2.pdf : W-2, Wage and Tax Statement (to employee)
  fw3.pdf : W-3, Transmittal of Wage and Tax Statements (to the Social Security Administration)

Federal unemployment (FUTA) tax

• f940.pdf : 940, Employer's Annual Federal Unemployment (FUTA) Tax Return

Filing information returns for payments to nonemployees and transactions with other persons
See Information Returns

Excise Taxes
Refer to the Excise Tax web page

First of all I'm not a lawyer so, don't take this for granted.
As you can see from the list, most of the states do not require a formal filling with the "secretary of state". But most of them recommend to register a business name, trade name or assumed name, to gain some level of legal security while doing business.

The information in this list was compiled on the latest information, but could be outdated by any time.

• Alabama: no formal filling required
• Alaska: no formal filling required
• Arizona : no formal filling required
• Arkansas : no formal filling required
• California : no formal filling required
• Colorado : no formal filling required
• Connecticut : no formal filling required
• Delaware : no formal filling required
• District of Columbia: no formal filling required
• Florida : no formal filling required
• Georgia : registering required
• Hawaii : no formal filling required
• Idaho : no formal filling required
• Illinois : no formal filling required
• Indiana : no formal filling required
• Iowa : no formal filling required
• Kansas : no registering required
• Kentucky : registering required
• Louisiana : registering required
• Maine : registering required
• Maryland : no information available
• Massachusetts : registering required
• Michigan : registering required
• Minnesota : filling required
• Mississippi : no registering required
• Missouri : no formal filling required
• Montana : registering required
• Nebraska : trade name application optional
• Nevada : registering required
• New Hampshire : registering required
• New Jersey : registering required
• New Mexico : no registering required, except there are employees
• New York : registering required
• North Carolina : no information available
• North Dakota : filling required
• Ohio : filling required
• Oklahoma : no information available
• Oregon : registering required
• Pennsylvania : registering required
• Rhode Island : no information available
• South Carolina : no registering required
• South Dakota : registering required
• Tennessee : registering required
• Texas : registering required
• Utah : registering required
• Vermont : registering required
• Virginia : registering required
• Washington : registering required
• West Virginia : registering required
• Wisconsin : registering required
• Wyoming : no registering required

Being a small business owner whether you are the Fishmonger or Woodturner, there is actually a lot more pressure on you to be organized. Although a certain amount of spontaneity is valuable and expected of small business, a fair amount of structure and planning is vital if you will attempt to compete with what the bigger companies offer. Take your time now to really consider the scope of your business and write it down. This should give you a legitimate idea of what you are dealing with, where you are, what your goals are, and how close you are to achieving them.

The primary thing is to make sure to get every detail down on paper. This gives you a place to anchor your business, and something solid to revise if things need to be changed later on. The planning document can guarantee that you, your employees, and your investors are all of the same mind.

The first thing to put on your page is a description of your business. This includes the plans for what your business will do, what services you provide and what goods you will produce. Basically, this will verbalize the scope of your small business. While you many want to increase this later, you will discover that writing down of your terms and limits is essential for business growth. This is also a good spot to include what type of end game you have. While they can be general ideals that you want to stick to, you should build on it with some rough gross and net income figures that you are wishing for.

Up next, your small business plan should have to do with the market, both current market situation, your market projections and how you are going to affect it. Why why your business will draw people to it and how will your business or service will change the market? How are you going to get some buzz going about your services and will you have different types of customers that will be affected by various parts of your business? This part of your business plan really "proves" your company has a right to exist and gives evidence for why it should be funded, so take your time and put a good effort into it.

Finances are the next thing that you should work on. Include general expenses, contingency fees, licensing fees if necessary and anything that will require money. Because just about any investors and loan officers will ask to look at your business plan primarily for this area, this is of utmost importance for you to polish. If necessary, look at examples from similar businesses to see the way that your competition has set things up. Put down an accurate view of your current business status, but remember to keep your eye on your end goal.

One final thing, think about management. Who is in charge, and line up their responsibilities? This is a prime way to maintain your organziation and delineate responsibilities. Like the parts of the plan that I've described above, it can be changed, but the most important thing is to have it there in the first place.

Take as much effort as it takes to make sure that your small business plan is the best you can do, and you will know that your own business will start becoming profitable much faster.
http://www.squidoo.com/samplebusinessplan

Below is a checklist of steps to take before you open for business. Keep in mind that your sole proprietorship's start-up requirements might vary from the list below, depending on the specific type of business you are in, and where your business is located.

1. Decide on a business name for your sole proprietorship.
   (Learn more: Pick a Winning Name for Your Business)
2. Search availability of your sole proprietorship's chosen business name, and for similarity to existing names.
   (Learn more: Make Sure Your Proposed Business Name is Available)
3. Register your sole proprietorship's name (including as a "fictitious business name," if applicable).
   (Learn more: Registering Your Business Name)  
4. Obtain business licenses and permits for your sole proprietorship from:
• The federal government.(Learn more: Federal Start-Up Requirements)
• Your state government. (Learn more: State Start-Up Requirements)
• Your local government. (Learn more: Local Start-Up Requirements)