Corporate Transparency Act – Sole Proprietorships
In the case Patterson v. V&M Auto Body, the Ohio Supreme Court held that “a sole proprietorship has no legal identity separate from that of the individual who owns it.” A sole proprietorship doing business under a trade name or a fictitious name does not result in the creation of an entity separate and distinct from the person operating the business. In creating a sole proprietorship in Ohio, it is not necessary to file any paperwork with the Ohio Secretary of State.
So, what does it take to create this separate corporate legal identity? In Ohio, a person is able to create a separate corporate legal identity upon filing with the Ohio Secretary of State the articles of organization when organizing a limited liability company or the articles of incorporation when incorporating a corporation. A limited liability company and a corporation are considered to be legal entities separate and distinct from the person operating the business.
Do you have a question about the the Corporate Transparency Act and Sole Proprietorships?
Schedule a free consultation today.
FREE 30-MINUTE CONSULTATION
Schedule your free no-obligation consultation today!
Founding Partner at Corpus Law Inc