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 Kansas, a sole proprietorship is indeed the simplest business structure and does not require formal registration to establish. As a sole proprietor, you are automatically considered as such when you commence business activities on your own. This means that there is no legal distinction between you and your business; you receive all profits and are personally liable for all debts, losses, and liabilities. While no formal action is required to start a sole proprietorship, you must comply with any licensing and permit requirements that apply to your type of business. These requirements can vary depending on the industry you are in, as well as state and local laws. It is important to check with local government agencies, such as the Kansas Department of Revenue and city or county clerk's offices, to ensure that you have all necessary permits and licenses to legally operate your business in Kansas.