When you have a sole proprietorship, you’re the sole owner. While you’re liable for all the business’s debts, you’re also entitled to all its income. And when it’s time to make a business decision, you’re not legally required to check with shareholders or partners.
Cheap and easy setup
It costs zero dollars to operate a sole prop under your own name. All you need to do is make sure you file your taxes correctly. Contrast this with other business structures. Virtually every other one costs money to form.
No red tape
Corporations and partnerships have to follow a lot of regulations, especially in terms of how the business is structured, who gets the power to make certain types of decisions, and what information needs to be disclosed to which members. Sole proprietorships are free of these requirements.
Simple tax filing
Of all business structures, sole props have the smallest requirement for recordkeeping. Day-to-day bookkeeping is important—it lets you plan your business’s future and correctly file your taxes on time. But it’s simple compared to other business structures.
Register your new sole proprietorship business name in Canada
Company Formations offers fast & easy sole proprietorship in Canada for only $39.99 plus government fees.