To operate a sole proprietorship in Delaware, you do not have to register with the state. Also, you can conduct your business using your own name instead of an assumed or fictitious name, or a trade name. You must, however, formally register with the state if you use a name that is different from your own name.

Does a sole proprietor need a business license in Delaware?

In Delaware, all businesses – including sole proprietorships – must register for a general business license with the State of Delaware. In addition to this general business license, you may also need industry-specific licenses or permits to operate your sole proprietorship in a compliant fashion.

What is a sole proprietorship in the state of Delaware?

What Is a Delaware Sole Proprietor? As opposed to a corporation or limited liability company (LLC), the sole proprietorship is not a legal business entity. The sole proprietorship is a one-person business that is not considered to be a distinct entity from the person who owns it, and it is frequently operated using the owner’s personal name.

How much does it cost to file a Delaware LLC?

Income can be taxed as a pass-through entity like the sole proprietor or partnership or as a corporation. The initial cost to file the Certificate of Formation and form a Delaware LLC is $90. LLCs also pay an annual franchise tax of $300.

What are the steps to starting a business in Delaware?

The second step to starting a business in Delaware is selecting a business entity. The business entity is sometimes referred to as the business structure. This is how a business is legally organized to do business. The four primary business entities include the sole proprietorship, partnership, corporation and LLC.

What’s the difference between a LLC and sole proprietorship?

The other big difference between sole proprietorships and more formal business structures is the fact that sole proprietors are allowed to commingle business and personal assets as much as they want to. With LLCs and corporations, ownership is required to keep their assets separate from those of the company.