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 Mississippi, 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 Mississippi, you are not required to file any formation documents with the state to start your business. However, depending on the nature of your business, you may need to obtain relevant licenses and permits from state and local agencies. These requirements vary based on the type of business, location, and industry regulations. It's important to check with local city and county governments to ensure compliance with local ordinances. As a sole proprietor, you are personally responsible for all profits, debts, losses, and liabilities of the business, meaning that there is no legal distinction between your personal and business assets.