A sole proprietorship is the simplest and most common structure chosen to start a business. It is an unincorporated business owned and run by one individual with no distinction between the business and you, the owner. You are entitled to all profits and are responsible for all your business’s debts, losses and liabilities.

You do not have to take any formal action to form a sole proprietorship. As long as you are the only owner, this status automatically comes from your business activities. In fact, you may already own one without knowing it. If you are a freelance writer, for example, you are a sole proprietor. But like all businesses, you need to obtain the necessary licenses and permits. Regulations vary by industry, state, and locality.

In Delaware, a sole proprietorship is indeed the simplest business form and does not require formal registration with the state to be established. As a sole proprietor in Delaware, you are the sole owner and are personally responsible for all aspects of the business, including debts and liabilities. While you don't need to register the sole proprietorship itself, you must comply with any licensing and permit requirements that apply to your specific type of business. These requirements can vary based on the industry you are in, as well as local city or county ordinances. It's important to check with the Delaware Division of Revenue and local government offices to ensure you have all necessary licenses and permits to legally operate your business. Additionally, if you choose to operate under a trade name (also known as a DBA - 'doing business as'), you must register that name with the Delaware Division of Revenue.