What documents are required for a sole proprietorship business?
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What registration steps are required to start a US solo business (sole proprietorship), and how do these vary by state? What specific paperwork is required for a one-person operation, and are there key differences between California and Texas?
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You need to do DBA registration. Get an EIN (Employer Identification Number), licenses/permits from local, state, and federal levels, and a state tax ID (collecting sales tax). This is the paperwork that you need to have done before starting your business.
The basic difference between California and Texas is that in California you require more permits, like heavier regulatory and tax burdens, and you require a seller’s permit for selling goods. And in Texas, there are generally simpler rules, like there is no state income tax and all.