A sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.
1. Determine what form of business organization you prefer. You may choose to remain a sole proprietorship and attract additional funding from lenders, add partners or form a limited liability entity such as a corporation, limited liability company or limited partnership.
2. Invite partners or lenders who can provide a tangible contribution to your business, either in terms of expertise, capital or both. If you add parties who will take an ownership stake in your business.
3. Register your company with your state's Secretary of State by filing a certificate of partnership, articles of incorporation or LLC articles of organization, as appropriate, and paying a fee.
4. Create a partnership agreement, a set of corporate bylaws or an LLC operating agreement covering issues such as capital contributions, ownership interests, transferability of ownership interests, voting rights, management, buyout options and distribution of profits and losses, unless you choose to remain a sole proprietor.