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 Wisconsin, a sole proprietorship is indeed the simplest business structure for an individual to start and operate a business. It does not require formal registration with the state to begin operations. As a sole proprietor, the owner is personally entitled to all profits but is also personally liable for all debts, losses, and liabilities incurred by the business. This means that there is no legal separation between the individual's personal assets and the business's obligations. While no formal action is required to establish a sole proprietorship, the owner must comply with all relevant licensing and permit requirements, which vary depending on the type of business, location, and industry. This may include obtaining a business license, a seller's permit, or professional licenses, as well as registering for state taxes. It is important for sole proprietors in Wisconsin to check with local and state agencies to ensure they meet all legal requirements to operate their business legally.