General Business Set Up Information

A sole proprietorship is typically one individual in business alone. Sole proprietorships are the most common form of business structure.

• The primary entity number for a proprietorship is the social security number (SSN) of the sole person.
• Federal name: Sole Proprietorship
• Ownership information needed: Name and SSN of owner.  

An additional type of sole proprietorship is a marital joint account.  Married individuals that own the business together can set up this business structure.

• The primary entity number for a joint ownership is the SSN of the primary spouse. However, the other spouse’s SSN is also needed. Upon registration, the state will assign a joint identification number to the business’s tax account.
• Federal name: Sole Proprietorship—each spouse completes a separate Schedule C for their portion of earnings and attaches it to their 1040 federal income tax return.
• Ownership information needed: Names and SSNs of both spouses.

Registration for a sole proprietorship will be under the owner’s legal name.  However, the business’s operational name, “doing business as” name (DBA), may be entered during the registration process.