Setting Up an Unincorporated Business

Lawline FAQ: The simplest form of a business is a sole proprietorship. In a sole proprietorship, you dedicate a portion of your money to business use, but do not form a new legal entity. You simply use your money and run your business. No written document is necessary to form a sole proprietorship, but a tax identification number, certain city or county business licenses, and types of insurance, such as worker's compensation insurance, may be required.