What are the most common mistakes when setting up a sole proprietorship?
Common mistakes made when setting up a sole proprietorship are, number one, they don’t get an assumed name for the sole proprietorship when they need one. I wouldn’t call it a monumental or a horrific mistake but it’s definitely a mistake that you would rather not make. If you’re going to be operating under an assumed name or name other than your own, you should register it with the county, state or with the city, as required by your jurisdiction . Additionally, I think one of the biggest mistakes when setting up a sole proprietorship is not keeping funds separate. Having separate bank account for the sole proprietorship, keeping separate receipts, even having a separate checking account is crucial when you’re setting up a sole proprietorship. It allows you to take a look at your sole proprietorship’s profits and losses separate from the rest of your family and it really kind of helps you out at tax time at the very end.
