Entity Essentials: What Sole Proprietor and General Partnership Should Know

✅ What It Means
You are the business. No separate legal entity.
You make all decisions and keep all profits.
You report income and expenses on your personal tax return.
🧾 What You Need
A business name (optional)
Local permits or licenses
A separate bank account (recommended)
⚠️ What to Watch Out For
No liability protection: If your business is sued or owes money, your personal assets are at risk.
Limited growth: Harder to raise capital or hire employees formally.
🎯 Best For
Freelancers, consultants, gig workers, and solo creators testing an idea.

✅ What It Means
You and one or more partners share ownership, profits, and responsibilities.
Each partner contributes money, labor, or skills.
Income is passed through to each partner’s personal tax return.
🧾 What You Need
A partnership agreement (strongly recommended)
Local permits or licenses
Clear roles, responsibilities, and profit-sharing terms
⚠️ What to Watch Out For
No liability protection: Each partner is personally liable for business debts — even those caused by the other.
Shared risk: Disagreements or unequal effort can strain the partnership.
🎯 Best For
Trusted co-founders, family businesses, or joint ventures with shared vision.

✅ Default Name
Your business name is automatically your full legal name (e.g., Eric Mensah).
You can operate under this name without any extra registration.
📝 Want a different name?
You’ll need to file a DBA (Doing Business As) — also called a fictitious name or trade name.
Example: You want to operate as Yorisi Tools instead of Eric Mensah → File a DBA with your county or state.
📌 Why use a DBA?
Branding: Looks more professional and memorable.
Privacy: Keeps your personal name out of public-facing materials.
Flexibility: Easier to pivot or expand your offerings.

✅ Default Name
The business name is typically a combination of the partners’ legal names (e.g., Mensah & Diallo).
This is automatic unless you choose otherwise.
📝 Want a brand name?
File a DBA to operate under a unified business identity (e.g., Yorisi Collective).
All partners must agree and sign the DBA registration.
📌 Why use a DBA?
Unified branding for marketing and outreach.
Easier to open a business bank account and build trust.
Helps distinguish your venture from personal identities.

Scenario	Suggested Action
Using your full legal name	No DBA needed
Wanting a brand or trade name	File a DBA
Operating with partners	File a joint DBA
Opening a business bank account	DBA often required
Marketing or selling products online	DBA strongly recommended