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 Nevada, a sole proprietorship is indeed the simplest business form and does not require formal registration with the state to be established. As a sole proprietor in Nevada, you are automatically considered as such by engaging in business activities without registering as any other form of business entity. However, you must comply with all relevant licensing and permit requirements, which vary depending on the type of business, location, and industry-specific regulations. It's important to note that as a sole proprietor, there is no legal distinction between you and your business, meaning you are personally responsible for all debts, liabilities, and obligations of the business. This includes the responsibility to report and pay taxes on all income generated by the business. It is advisable to check with local city or county offices for any additional local licensing or permit requirements, and consider consulting with an attorney to understand all legal obligations associated with running a sole proprietorship in Nevada.