A sole proprietorship is a business owned and operated by one individual. It is the simplest business structure. The sole proprietor is the sole owner of the business and all its assets and the business has no legal existence separate and apart from the owner.
A sole proprietorship may operate:
- Under your own name, or
- Under another name you've registered (as long as you don't add any of the legal designations of other forms of business, such as Ltd. or Inc.)
Other characteristics of a sole proprietorship:
- Relatively easy and inexpensive setup. For instance, if you choose a sole proprietorship and operate it under your own name, you don't even have to register your business.
- Sole proprietorships do not require annual filings.
- Tax simplicity - declare your business income on your personal income tax form, rather than having to file a separate tax form, (as you would have to do if you chose the corporate form of business ownership).
- If you do reserve a business name they only have to be renewed every three years.
Please note that a sole proprietorship includes unlimited liability. This means that as a sole proprietor you have personal liability for all the debts and obligations of the business. If your business is sued, you and your personal assets are at risk. Also, as a sole proprietorship it may be more difficult raising capital, and you may have to use your own money or personal loan for the business.
Sole proprietorships name reservations and registrations may be easily completed via the Corporate Registry Application
Have you decided your business type?
Go to Step 2: Reserve a Name