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 South Carolina, a sole proprietorship is indeed the simplest business structure and does not require formal registration to establish. As a sole proprietor, you are the sole owner and operator of your business, and there is no legal distinction between you and your business entity. This means you are entitled to all profits but also personally liable for all debts, losses, and liabilities incurred by the business. While no formal action is required to form a sole proprietorship, you must comply with any applicable licensing and permit requirements, which vary depending on the type of business, as well as state and local regulations. It is important to check with South Carolina's state agencies and your local government to ensure you have all necessary licenses and permits to legally operate your business.