Sole Proprietorship for Dummies (What is a Sole Proprietorship and How Do I Start One?)

Video Description

Start any business entity (LLC, S Corp, C Corp) with Bizee (previously IncFile): https://startupwise.com/bizee ^ Bizee is the new and improved IncFile — they're the same company and still provide the same services, but with a new name. In today's video, I go over everything you need to know about sole proprietorships, so if you're a new business owner wondering what the difference is between a sole prop vs something like an LLC or S Corp, then this video is for you. Get started with your domain name and website with Wix: https://startupwise.com/wix Track your business finances using Quickbooks: https://quickbooks.grsm.io/charleschang6531 A sole proprietorship is a type of business structure in which an individual owns and operates a business on their own, without any formal legal separation between themselves and the business. This means that the individual is personally responsible for all the debts and obligations of the business, and they also have complete control over all business decisions and operations. This type of business is simple to set up and operate, and it is often used by new small businesses, freelancers, and self-employed individuals. Our favorite business must-haves: 💳 Best business credit cards: http://startupwise.com/creditcards 🏦 Novo (best business bank): https://startupwise.com/novo 🖥️ Best AI website builder ($3/month using code STARTUPWISE): https://startupwise.com/hostinger/ ⚙️ Northwest (best $39 LLC formation service): https://startupwise.com/northwestLLC 💰 Payroll with Gusto (get 2 months free!): https://startupwise.com/gusto 👨💼 Best overseas staffing agency (save 80% on payroll): https://paired.so/startupwise Be sure to watch until the end of the video because I'll go over a bunch of things such as the pros and cons of having a sole proprietorship, access to funding, and other potential drawbacks to operating as a sole proprietorship. Although a sole proprietorship has its limits, they can be an attractive option for those who want to get started with business right away without needing a proper business entity set up. If you found this video helpful, check out our other videos about business formation: Business Formation Playlist: https://www.youtube.com/watch?v=WOHSLiMqgio&list=PL45E5gftKTMXslt5vPETcwXC83twt2Sz4 How to Set Up an S Corp Step-By-Step for FREE (2025 Guide): https://www.youtube.com/watch?v=VKGj7nvG_w4 How to Create an Ecommerce Website in 2025 (Step-By-Step Tutorial): https://www.youtube.com/watch?v=dEtGGZ5PNTs How to Elect Your LLC To Be Taxed As an S Corporation (Fast): https://www.youtube.com/watch?v=yPujEa46xAc How Much Does it Cost to Start an S Corp? (Explained): https://www.youtube.com/watch?v=9WCtIuhGqpw Request New Videos Here: https://forms.gle/k9TtfauggkEpAWNQA More tutorials on our website: https://www.startupwise.com Thanks for watching! I hope you have a wonderful day! -Charlie #SoleProprietorship #Business #Entrepreneur Timeline: 0:00 - Intro 0:52 - What Is A Sole Proprietorship? 1:45 - Types Of Sole Proprietors 2:06 - How Does A Sole Proprietorship Work? 2:40 - How To Set Up Your Sole Proprietorship 2:55 - Step #1 3:38 - Step #2 4:26 - Step #3 5:04 - Step #4 5:22 - Step #5 5:35 - Step #6 6:12 - Step #7 6:50 - Step #8 7:59 - Step #9 8:07 - Step #10 8:29 - Step #11 9:27 - Different Types Of Taxes You'll Need To Pay As A Sole Proprietor 9:52 - Record-keeping For Your Sole Proprietorship 10:14 - Pros And Cons Of Having A Sole Proprietorship 11:47 - Important Things To Consider 13:29 - Final Thoughts Disclaimer: Some of the links above may be affiliate links, which means that if you click on them I may receive a small commission. The commission is paid by the retailers, at no cost to you, and this helps to support our channel and keep our videos free. Thank you! All info from our videos is compiled from online sources and our own experience, and we encourage you to do your own due diligence. We appreciate your viewership! In addition, we are not a financial advisors. StartupWise does not provide tax, legal or accounting advice. The ideas presented in this video are for entertainment purposes only. Please do your own due diligence before making any financial decisions.