This is the easiest kind of business to form, because it needs no government approval. Profits are taxed as personal income and the owner is personally liable for all debts and taxes. A sole proprietor does not have to be registered unless the business uses an assumed business name. If the name of the business does not include the legal name of the business owner, the business name must be registered as an assumed name with the local city or town in which it is located. This allows the public to identify who is transacting business under that business name.
All partners are personally liable for the obligations of the partnership.
A general partnership does not have to be registered unless it uses an assumed business name. If the name of at least one of the general partners is not part of the business name of the partnership, the business name must be registered with the local city or town. The registration allows the public to identify who is transacting business under that business name. The Corporations Division maintains filings for active and inactive Rhode Island and foreign business corporations, non-profit corporations, limited partnerships, and limited liability companies.