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Jason M · 07-02-09, 07:00

Every state is different....well, maybe not EVERY state. But they all have their own rules. In Colorado for example, you don't need to do anything...literally, nothing to become a Sole Proprietor. You don't need to register, have insurance, etc. You *can* register with the state if you want. You are only responsible for paying your income tax at the end of the year. Keeping track of your receipts and mileage on your work vehicle is important. Other than that don't expect to write much off unless you move up to having employees and becoming an LLC.

Again, Texas might be completely different. Going to your states website would be a good start.

07-02-09, 07:00	#6 (permalink)
Jason M Registered User Jason M is offline Join Date: Jul 2006 Location: Dillon, CO Posts: 493	Re: Becoming a Legal Business Every state is different....well, maybe not EVERY state. But they all have their own rules. In Colorado for example, you don't need to do anything...literally, nothing to become a Sole Proprietor. You don't need to register, have insurance, etc. You can register with the state if you want. You are only responsible for paying your income tax at the end of the year. Keeping track of your receipts and mileage on your work vehicle is important. Other than that don't expect to write much off unless you move up to having employees and becoming an LLC. Again, Texas might be completely different. Going to your states website would be a good start.