When one adds in the constantly changing nature of the law itself, it is easy to see how overwhelming it could be to handle one's own case. There are no shares of stock or certificates or other papers to confer ownership of a sole proprietorship. The owner simply owns all of the assets and liabilities of the business. Tax considerations and the application of special laws dealing with the liquidation of a business, for example, the Bulk Sales Act, may also affect how one goes about acquiring or selling a sole proprietorship. Since there is no stock in a sole proprietorship, the provisions of the Securities Act of 1933 do not apply.
Income is taxed at the owner's personal level.
Similarly, the deductions that the business would be allowed to take pass through to the owner. Another state may have special rules for how a foreign business man may do business there. If you plan to do business outside of Texas, you need to know what those qualification provisions are and how to satisfy them. You are personally liable for the consequences of your venture. Maintain proper records.