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 Oregon, a sole proprietorship is a business structure where the business is owned and operated by a single individual without forming a separate legal entity. This means the owner is personally responsible for all financial obligations of the business, including debts, losses, and liabilities. Forming a sole proprietorship in Oregon does not require any formal action or filing with the state; it is established by default when an individual begins business activities on their own. However, sole proprietors must comply with licensing and permit requirements, which vary depending on the type of business, location, and industry-specific regulations. It is important for sole proprietors in Oregon to check with their local city and county governments to ensure they have all necessary licenses and permits to operate legally. Additionally, while not required, a sole proprietor may choose to register a business name (assumed business name) with the Oregon Secretary of State if they wish to do business under a name other than their legal name.