Best Sole Proprietorship Services

Compare top-rated Sole Proprietorship services to find the best fit for your business

Staff Writer

Arorix Editorial Team

Updated: June 14, 2025, 5:29pm

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Best Budget-Friendly Sole Prop Setup – Register a DBA for $99 and Launch Fast

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9.0

Top All-in-One Sole Prop Service – DBA and EIN Tools with Compliance Support

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8.0

Trusted Legal Brand – Register Your Sole Proprietorship with Optional Legal Support

 

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Looking for a Complete All-in-One Solution?

Starting a sole proprietorship is simple, but using a trusted filing service can make it even easier. These providers help you register a DBA, obtain an EIN, and ensure you’re meeting any state or local requirements. Many also offer helpful extras like business name checks, compliance reminders, and branding tools. If you want a smoother, more professional way to launch your business, using a service built for sole proprietors is a smart choice.

Why Sole Proprietorship Services Focus on DBA Filings

Unlike LLCs or Corporations, sole proprietorships don’t require formal formation documents with the state. If you’re operating under your own legal name, no filing is needed at all.

However, most business owners want to operate under a brand or business name — not their personal name. That’s where a DBA (Doing Business As) comes in.

What Sole Proprietorship Services Actually Provide:

  • DBA Registration – Lets you run your business under a name like “Green Valley Lawn Care” instead of “John Smith”
  • EIN Filing – Needed to open a business bank account or hire employees
  • Business Tools – Some providers bundle in logo design, website setup, or compliance reminders

Why This Matters:

If you’re launching a business as a sole proprietor, filing a DBA is the main way to make it official in the eyes of customers, banks, and state agencies. That’s why most services compare pricing and features based on their DBA packages

What is a Sole Proprietorship?

A sole proprietorship is the simplest and most common business structure in the U.S. It’s owned and operated by one person, and there’s no legal distinction between the owner and the business.

You don’t need to file formation documents to start a sole proprietorship — just begin doing business. However, if you want to operate under a name other than your own, or open a business bank account, you’ll likely need to register a DBA (Doing Business As) and get an EIN.

Tax Differences: Sole Proprietorship vs. Other Formations

  • Business income is taxed on your personal tax return (Form 1040 + Schedule C)
  • You pay self-employment tax (15.3%) on all profits
  • No separation between business and personal income
  • Fewer available tax deductions compared to corporations
  • Simple, straightforward tax setup with minimal paperwork

Sole Proprietorship Filing Fees and Costs

Common Costs:

  • DBA (Doing Business As) Registration – Typically $10–$100, depending on your state or county
  • EIN (Employer Identification Number) – Free when obtained directly from the IRS
  • Business Licenses or Permits – Varies by industry and local laws; can range from $20 to several hundred dollars
  • Publishing Requirements (in some states) – States like New York require public notices of your business name, which can cost $50–$150+
  • Third-Party Services (Optional) – Filing services like CorpNet, ZenBusiness, or LegalZoom charge $99–$199+ for handling registration and compliance

Tip: Using a formation provider can help you avoid missed steps and stay legally compliant.

Why Startups and Solo Entrepreneurs Use Sole Proprietorship Filing Services

  • Saving time and avoiding mistakes when filing forms
  • Getting fast access to name checks, EIN registration, and compliance tools
  • Launching with a brand, domain, or logo if needed
  • Gaining peace of mind that the business is registered correctly the first time

Common Mistakes to Avoid When Starting a Sole Proprietorship

  • Not Registering a DBA Name
    Operating under a business name without proper registration can lead to fines or rejected bank applications.
  • Skipping the EIN
    Even if you don’t have employees, an EIN helps you separate personal and business finances and is often required for opening a business bank account.
  • Mixing Personal and Business Finances
    Using your personal bank account for business income can create confusion during tax season and weaken your credibility with vendors or clients.
  • Ignoring Local Licensing Rules
    Many cities or counties require small business licenses or permits—even for sole proprietors. Failing to check local requirements can result in penalties.
  • Not Tracking Income and Expenses
    Sole proprietors are taxed on all profits. Without clear records, you could miss deductions or face IRS scrutiny.

Frequently Asked Questions (FAQs)

In most cases, no. Sole proprietorships don’t require formal state registration unless you’re operating under a business name, in which case you’ll need to file a DBA (Doing Business As).

Yes. Sole proprietors can apply for a free EIN (Employer Identification Number) through the IRS. An EIN is useful for opening a business bank account, hiring employees, or protecting your personal Social Security number.

Sole proprietors pay income tax on business profits through their personal tax return, along with self-employment tax (Social Security and Medicare). You’ll file using IRS Form 1040 and Schedule C.

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