The most typical business structure in the US is a sole proprietorship, which is a company owned and operated by only one person. You’re automatically regarded as a sole proprietor if you run a business alone without creating a separate legal entity.
Despite being simple to establish and run, a sole proprietorship doesn’t offer the same amount of protection as a limited liability company (LLC). Your personal assets are protected in the event of lawsuits or debts by an LLC, which separates your personal assets from your business assets. However, setting up an LLC takes more paperwork and costs, so you must choose which form is best for your company. How Can I Register My Company with the State of Kansas? The state of Kansas does not require a solo proprietorship to be registered. Nevertheless, depending on your region and sector, you might need to acquire particular licenses and permits. For instance, the Kansas Department of Agriculture will need you to obtain a food service permit if you are opening a food business.
You must register as “doing business as” (DBA) with the county clerk where your firm is located if you’re using a name for your company that differs from your personal name. This enables you to operate under a company name without setting up a distinct legal body.
In conclusion, even if a sole proprietorship is exempt from registration with the state of Kansas, you should still make sure that you are abiding by all relevant rules and laws. Also take into account the advantages of setting up an LLC to safeguard your private assets.