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 West Virginia (WV), a sole proprietorship is indeed the simplest business structure and does not require formal registration to establish. This means that if you start conducting business activities on your own, you automatically become a sole proprietor. However, while no formal action is required to create a sole proprietorship, you must comply with all relevant licensing and permit requirements, which can vary depending on the type of business, location, and industry-specific regulations. As a sole proprietor in WV, you are personally responsible for all aspects of the business, including debts, losses, and liabilities. It's important to note that there is no legal separation between you and your business, which has implications for your personal assets in the event of business debts or legal actions. To operate legally, you may need to register for state taxes, obtain a business license, and follow any other local regulations that apply to your business activities.