Sole Proprietorship

A Sole Proprietorship is usually nothing more than an individual doing business without a formal business structure. Often the proprietor will register a DBA (“doing business as”) with the county so that he or she may do business under a fictional name. Photographer John Smith may choose to advertise and operate under Smith Photography and would file with the county to do so. It’s important to understand that while it’s the simplest route to take, operating as a sole proprietor offers no liability protection. If a judgment was obtained against Smith while on a job for a client, his personal assets would be at risk. A smart way to avoid that is by creating a limited liability entity like an LLC or Corporation, filing that entity with the State of Nevada, and preparing an operating agreement that will protect your ownership interest if a creditor ever levied a judgment against it.