Sole Proprietor (DBA)

As a Sole Proprietorship, no distinction is made between the owner and the business.  The owner is personally responsible for unlimited losses and debts from the company.  All assets of the business are the owner's and so are all of the debts.  The company and the individual are one.

One of the major difficulties with a Sole Proprietorship is that it is generally impossible to raise equity, as no shares are available.  Additionally, the life of the business rests with the owner.  Employees can be hired throughout the course of the business, but the employees cannot earn or be granted equity in the business.

In the United States, one should file a "Doing Business As" declaration.  One does not have to use his/her name, but you should check that the name you select does not conflict with another entity.

The Sole Proprietor organizational form has the least amount of government regulation affecting them.

All profits (or losses) of the business are carried directly to and through the owner.  Consequently, they become part of the owner's personal income tax returns.