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 New York, a sole proprietorship is indeed the simplest business form and does not require formal registration to establish. However, if a sole proprietor chooses to operate under a name other than their own, they must file an Assumed Name Certificate (commonly known as a 'Doing Business As' or DBA) with the county clerk's office where the business is located. Sole proprietors in New York must also comply with specific licensing and permit requirements that vary depending on the type of business, the services offered, and the location of the business. These may include state and local business licenses, sales tax permits, health department permits, and professional licenses. Additionally, sole proprietors are personally liable for all debts and obligations of the business, and all profits are reported on the individual's personal income tax return using Schedule C (Form 1040).