A sole proprietorship is the simplest business structure, common for individuals starting a business in Michigan. It's easy to set up because it's not a separate legal entity from its owner. This means you, as the individual, are the business. All profits and losses are reported on your personal income tax return. While straightforward, this structure comes with significant personal liability. Michigan law, like in most states, does not require a formal filing with the state to *create* a sole proprietorship. However, you may need to register a business name if you operate under something other than your own legal name.
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