Starting a sole proprietorship in Wisconsin

Having an idea for a business can be very exciting. Although the excitement has its own place, thinking about the next steps can be overwhelming. The utmost intimidation comes from additional processes and legal requirements for most people. Many entrepreneurs set a sole proprietorship to keep things simple since it’s the simplest business structure available. This practice also applies to the entrepreneurs and business aspirants of Wisconsin. A sole proprietorship can make things simple and easy for you and your business. Through LegalRegistration.com, you can form an LLC in no time. If you also have a business idea in mind and have decided on a sole proprietorship, keep reading for a step-by-step guide on starting a sole proprietorship in Wisconsin.

1. Choose a Business Name

The first step to start implementing your business idea is to develop a suitable name for it. As easy as it sounds, this step may be tricky for many people. Yes, you may have a lot of name ideas and concepts, but you need to make sure that name is not being used by any other business in your state. For more information visit the website LabyrinthTM Fundraising Compliance. After coming up with the name, it is recommended that you check its availability on the Wisconsin trademark database to make sure that any other company does not use the name to avoid any lawsuits or theft charges in the future.

2. Make a Business Plan

Business is all about making plans to earn profits. It is always a good idea to start by thinking about some marketing ideas and social media strategies. After establishing your name and basic idea for the business as a Sole proprietorship, you should establish a few key points.

• Business model
• Start-up costs
• Industry and scope
• Business address

Establishing these points will be helpful not just for your business but its legal procedures as well.

3. Obtain a DBA, Licenses, and Permits

Now that you have a name and a basic plan for your business, you can move on to some legal work. As a sole proprietor, your name is the identity of your proprietorship. Like many businesses, if you want to use a different business name, you can apply for a Doing Business As (DBA). Depending on the nature of your business, you may need different business and professional licenses. In addition, you can also check with your city or county government for more information and guidance. Please give LegalRegistration.com a phone call if you need more information.

4. Get an EIN

Now that you have figured out starting a sole proprietorship in Wisconsin, it is time to make your business stronger. To strengthen a business, you first need employees to run different roles smoothly. Sole proprietors who wish to hire employees are required to obtain an Employer Identification Number (EIN). The IRS issues your EIN for tax reporting purposes and to establish the authenticity of a business. You can file for your EIN through the IRS website. This practice can also ease opening a bank account and reduce your chances of fraud and identity theft.

5. Appoint an EIN Responsible Party

Businesses with more than one member can divide their job duties effectively. However, having to do everything alone may be the biggest backlash of the sole proprietorship. Get more information Sole Proprietor When you file for an EIN number, the IRS needs to get in touch with someone who has the right information and authority in the business. In the case of a sole proprietorship, the owner is naturally considered a responsible party. Unfortunately, you cannot outsource anyone from outside to become your Responsible Party, as they cannot have the authority to make decisions on behalf of your business.

6. Advantages of Sole Proprietorship

A sole proprietorship is known to be the most basic and easiest business structure. That is why many people feel inclined towards it. However, like other business entities, it has both good and bad sides. For additional information What services do we provide? In addition to being the easiest business structure, the benefits of a sole proprietorship do not just end there. If you feel inclined towards sole proprietorship, here are a few advantages affirming your beliefs regarding it being the best option.

• Easy Setup

To begin with, a sole proprietorship is the easiest business structure to set up. Because no other members are involved, you can incorporate your business whenever and wherever you want. Check out the article Hit & Run Having no other members also reduces the paperwork and chances of conflicts.

• No Corporate Business Taxes

Did you know that C Corps pay 21% in corporate taxes on business profits? As a sole proprietor, you do not have to be concerned about such problems. Instead, you can stick to filing your tax returns. It means that your income will be taxed at a common tax rate.

• No Annual Filings

After the initial filing for incorporation, sole proprietors do not have to worry about other filings other than personal tax returns. On the contrary, other businesses incorporated as different entities must file annual reports of their updated members, managers, and some policies.

• No formalities

Business structures with more members have to deal with a lot of formalities in their day-to-day tasks. However, sole proprietors enjoy the benefit of working comfortably. As long as it’s legal, you can make any business decisions without seeking approval from anyone. As a sole proprietor, you do not have to be a part of formal annual and board meetings. In addition, you do not have to concern yourself by recording minutes.

• Easy Record Keeping

In a sole proprietorship, keeping your finances separate from business finances is all you need to do for efficient bookkeeping. Since sole proprietors have unlimited liability, most do not consider segregating their financials. As a result, sole proprietors can see their profits and losses realistically. After all, their business is an extension of their finances. Therefore it gets easier for them to keep records and stay aware of their finances.