When most people start any kind of business from home, be it online or not, generally it will be operated as a sole proprietorship.

And there’s good reason for that: it’s simple and convenient.

There are rarely any forms to fill out to start things and at tax time your additional paperwork load will generally be minimal.

But operating your online business as a sole proprietor doesn’t get you off that easily; there are some requirements you should be aware of, along with some potential pitfalls. (more…)