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 Florida, a sole proprietorship is indeed the simplest business form and is automatically established when an individual begins business activities without registering as any other type of business entity. As a sole proprietor in Florida, you are not required to file any formation documents with the state to start your business. However, you must comply with local and state licensing requirements, which vary depending on the type of business, location, and industry. This may include obtaining a business license, a sales tax permit, or professional licenses. Additionally, while the business and the owner are legally the same under a sole proprietorship, the owner is personally liable for all debts and obligations of the business. It is important for sole proprietors in Florida to maintain accurate records and consider the implications of personal liability associated with this business structure.