How can a sole proprietorship be commenced?

A sole proprietorship can be commenced in the name of the business or the sole proprietor. This means that an individual can choose to operate under their personal name or adopt a unique business name, which may enhance the business's identity in the marketplace. The flexibility in naming allows the sole proprietor to establish a brand while still maintaining the personal liability that comes with this type of business structure.

This form of business does not require formal registration like corporations do, although it may be subject to local business registration requirements depending on the jurisdiction. It is important to note that while a sole proprietor may choose a business name, it does not create a separate legal entity; the individual and the business remain legally the same.

The focus on naming in a sole proprietorship contrasts with more complex business structures, such as corporations or partnerships, which have additional registration and documentation requirements.