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 Georgia, a sole proprietorship is indeed the simplest business form and does not require formal registration with the state to be established. It is automatically created when an individual begins business activities on their own. As a sole proprietor in Georgia, you are personally responsible for all aspects of the business, including debts and liabilities. Profits from the business are also yours. However, it is important to comply with any licensing and permit requirements, which can vary depending on the type of business, location, and industry-specific regulations. For instance, if you provide certain professional services, you may need a professional license. Local business licenses may also be required based on the city or county where you operate. It's advisable to check with local government offices or an attorney to ensure you have all the necessary documentation to legally operate your business in Georgia.