Sole Proprietorship In Canada
The easiest way to start your own business is through sole proprietorship. Several key features that you should keep in mind should you be considering forming a sole proprietorship is that you and the business are deemed to be one legal entity legally, you would not be considered an employee of the business, and lastly any assets that are owned by the business are considered to be owned by you if you are a sole proprietorship business. Forming a business can be a complicated matter and if you are forming a sole proprietorship than there are several advantages and disadvantages that you need to be aware of.
The main advantage of forming a sole proprietorship over the other options is that you will be in charge of every decision that you will make as the sole proprietor of the business. Another major advantage of sole proprietorship is that any profits that the business develops are solely yours and filing your income taxes is much simpler, and a sole proprietorship is the easiest type of business to form in Canada.
Since the law makes no distinction between the owner and their business in a sole proprietorship there are a number of disadvantages that can stem from this issues. The first major disadvantage of forming a sole proprietorship is that you as a person are responsible for every part of your business. As the sole proprietor if your business is sued than you are being sued personally and if your sole proprietorship happens to fail than you may need to declare personal bankruptcy in order to pay off your business debts. When you are considering business matters it is highly recommended that you speak with lawyer. You can find a local business lawyer in our free online directory located here..
