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Questions and Answers
What is the key distinguishing feature of a sole proprietorship?
In a sole proprietorship, who is responsible for the business's debts and liabilities?
Which of the following scenarios is a sole proprietorship best suited for?
What is an advantage of a sole proprietorship over other business structures?
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When would a sole proprietorship be a good option for a business?
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What is a potential drawback of a sole proprietorship compared to other business structures?
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What is the first step in choosing a business name in Georgia?
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Which of the following is NOT a requirement for filing a trade name in Georgia?
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What is the purpose of obtaining a Publisher's Affidavit when filing a trade name?
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Which of the following statements about obtaining licenses and permits for a sole proprietorship in Georgia is NOT true?
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What is the purpose of the Trade Name Application form in Georgia?
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How long does it typically take to get a trade name approved in Georgia?
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Study Notes
Definition of Sole Proprietorship
- A business structure with a single owner, where the business and owner are considered the same entity for tax and legal purposes.
- The simplest form of business, often used by freelancers and goods sellers.
Characteristics of Sole Proprietorship
- The owner is personally responsible for all debts and litigation.
- No separation between the business and the owner.
Suitability of Sole Proprietorship
- Best for individuals who want to maintain total ownership of their business and are willing to take on the associated liability.
- Suitable for those who need to get a business up and running quickly.
- Can be a good test case for a business idea without upfront requirements.
Drawbacks of Sole Proprietorship
- Can be more difficult to get funding and credit.
- Requires capital at the start to make it easier.
Setting up a Sole Proprietorship in Georgia
- Choose a business name that is not already in use in the state.
- Search the Georgia Secretary of State database to ensure the name is available.
- File a trade name with the local county clerk, including the purpose and scope of the business.
- Obtain notarized signatures of all company owners.
- Publish a notice of intent to hold a trade name in the county's official legal organ.
- Obtain licenses, permits, and zoning clearance if needed.
Requirements for Setting up a Sole Proprietorship in Georgia
- Business name must not match any other business name in the state.
- Business name must not be misleading or use certain government agency terms or abbreviations.
- Trade name application requires a notary and includes the purpose and scope of the business.
- Filing fee varies by county.
- Publication of notice in the county's official legal organ requires payment.
- Keep the Publisher's Affidavit as proof of publication.
- Approval of trade name can take several weeks, but it never needs to be renewed.
Licenses, Permits, and Zoning Clearance
- Obtain licenses, permits, and zoning clearance depending on the industry and location of the business.
- Managed by the Georgia Secretary of State, with some areas licensed by independent agencies.
- Local cities and counties may require a business license.
- Professional licenses may be required for certain occupations.
- Zoning or other permits may be required for certain businesses.
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Description
Learn about sole proprietorship, a business structure with a single owner where the business and the owner are considered the same entity. Understand the implications for taxes and legal responsibilities.
