What is a Sole Proprietorship in Pennsylvania?

A sole proprietorship is the simplest structure for a business with a single owner. Sole proprietorships are attractive to many small business owners because of their lack of formalities and because there are no business tax returns to file. You are deemed a sole proprietorship in Pennsylvania once you engage in business activities without registering as any other business entity (e.g., corporation or limited liability company). The biggest disadvantage to doing business as a sole proprietorship is that it is not a business entity; thus, the owner can personally be held liable for the debts and obligations of the business. Sole proprietorships in Pennsylvania operated under the owner’s legal name require no filings with the Department of State; however, if the owner wants to do business under a name other than their legal name (i.e., a trade name), they must register a fictitious name with the Pennsylvania Department of State.