Benefits of sole proprietorships
Advantages of sole trading include that:
- you’re the boss
- you keep all the profits
- start-up costs are low
- you have maximum privacy
- establishing and operating your business is simple
- it’s easy to change your legal structure later if circumstances change
- you can easily wind up your business.
Disadvantages of sole trading include that:
- you have unlimited liability for debts as there’s no legal distinction between private and business assets
- your capacity to raise capital is limited
- all the responsibility for making day-to-day business decisions is yours
- retaining high-calibre employees can be difficult
- it can be hard to take holidays
- you’re taxed as a single person
- the life of the business is limited.
Individuals wishing to operate as sole proprietors in Canada are required under Provincial Business Names and Partnership Act to register their business name by filing a Statement of Registration of Business/Trade Name with the Corporate Registries Office of their jurisdiction.
Register now online your new sole proprietorship for only $39.99