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 Ohio, 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, you are the sole owner and are personally responsible for the business's debts, losses, and liabilities. Profits from the business flow directly to you and are reported on your personal income tax returns. However, depending on the nature of your business, you may need to obtain specific licenses or permits at the local or state level. These requirements vary based on the type of business, location, and industry regulations. For instance, if you provide certain professional services, you may need a professional license. Additionally, you may need to register a trade name (also known as a DBA - 'doing business as') with the Ohio Secretary of State if you operate under a name different from your legal name. It's important to comply with all relevant regulations to legally operate your business in Ohio.