Tag Archives: partnership

Sole Proprietorship or Partnership

Many small businesses start off as either a sole proprietorship or partnership. They are the simplest business formations and often require minimal registration with your state.

A sole proprietorship is formed as soon as you start transacting business — when you sell something at a profit, whether it’s a service or an old pair of shoes, technically you’re running a sole proprietorship.

A partnership is formed when two or more people write an agreement to be in business. The contract is usually submitted to the state commerce department so that it will be an officially recognized business.

Learn more about whether a sole proprietorship or partnership is the right business formation for you in this section.



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