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 North Carolina (NC), a sole proprietorship is indeed the simplest business structure and does not require formal registration with the state to be established. As a sole proprietor in NC, you are the sole owner and are personally responsible for all aspects of the business, including debts and liabilities. Profits from the business flow directly to the owner's personal income, and taxes are reported on the owner's personal tax return. However, depending on the type of business and where it is located, you may need to obtain relevant business licenses and permits. These requirements can vary based on the specific industry, as well as local county or city ordinances. It is important to check with local government agencies and the North Carolina Department of Commerce to ensure compliance with all necessary regulations. Additionally, if you choose to operate under a name different from your own, you must file a 'Doing Business As' (DBA) name with the appropriate county register of deeds office.