A One Person Business

When you are considering creating a business, a Sole Proprietorship is the simplest option.  A Sole Proprietorship is a one person business that reports its income in his personal tax return using a Schedule C.  There is no need to file a separate tax return.

For best business practices, it's highly recommended that you keep a separate bank account to deposit your business income and  pay your business expenses. Don’t forget that as a Sole Proprietorship you can set aside tax deductible contributions to your retirement. The big problem as a Sole  Proprietorship is that you are 100%  personally liable for all your business debt, and legal claims. That is why it is so important to get business liability insurance to protect you.  

Always check your options when you start your business. Probably to form a Corporation or a Limited Liability Company it will be better for you.