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What is a sole proprietor?
A sole proprietor is a one-person business with no legal separation between owner and company — the simplest structure there is. No formation paperwork, but also no liability shield: business debts are personal debts. Most freelancers start here and form an LLC once the income justifies it.
In practice
A dog walker operating as herself reports business income on Schedule C of her personal tax return — no separate business tax filing needed.
Invoice from day one
No business entity required — Billia invoices work for sole proprietors too.
Create an invoice — freeFrequently asked questions
Do I need to register as a sole proprietor?
In most US states, no — you are one by default when you start selling. You may still need local business licenses for your trade.
What's the biggest risk of sole proprietorship?
Unlimited personal liability. If the business owes money or gets sued, your personal assets are exposed. An LLC fixes this.
Can a sole proprietor hire employees?
Yes — you'd get an EIN and run payroll like any employer. Many sole proprietors hire their first helper before forming an LLC.