According to The CRA, A Sole Proprietorship Is The Most Basic Type Of Business Organization. A Sole Proprietorship Is A Business That Is Owned By One Person Who Alone Is Responsible For All Liabilities—Legal Debts A Company Owes To Third-Party Creditors. Because Of Its Simplicity, Ease Of Setup, And Low Cost, Sole Proprietorship Is A Popular Business Structure. For Example There Are Numerous Responsibilities That Can Be Filled By A Sole Proprietorship. Farmers And Fishermen Can Run Their Businesses As Sole Proprietors. Consultants, Shoemakers, And Other Types Of Businesses Can Operate As Sole Proprietorships.
One Man Ownership
Sole Proprietorship Is Owned And Operated By A Single Person. You Will Have Full Decision Making Power And You Will Be Able To Create An Environment You Want To. You Are Not Compelled To Consult With Anyone Else In Making Adjustments And Judgments.
Easy And Affordable
In Canada, Starting A Business As A Sole Proprietor Is Relatively Simple And Inexpensive. There Are Minimum Start-Up Expenses, Which May Consist Of Little More Than Necessary Equipment, Such As A Computer And Software, Advertising, Or Selling Things.
There Are Fewer Formalities And Less Paperwork In This Kind Of Business. You Will Have Time To Focus On Your Developing Your Business Rather Than Fulfilling Other Formalities.
An Advantage Of Sole Proprietorship Is That There Is No Separate Tax Return Need To Be Filled. The Owner And The Business Have The Same Assets, Liabilities, Expenditures, Capital And Income. The Tax Return Of The Sole Proprietor Is Also The Tax Return Of The Business And It Sometimes Reduces Your Tax Liability And Sometimes Results Into Tax Refund.
Inheritance and Sale
As A Sole Owner You Can Maintain The Business For As Long As You Like, And Then Cash In And Sell It When It's Time To Retire. Even A Sole Proprietorship Can Be Passed Down To An Heir, Which Is Common Practice.
In This Form Of Business, The Sole Proprietor Assumes All Risk And Liability And Also The Sole Claimer Of The Profit. It’s An Easy And Simple Process To Deal With And You Can Afford Easily If You Want To Start Your Business On A Low Scale With Less Investments You Have. In This Process You Will Be Able To Spend Your Money And Energy On Developing Your Business Rather Than Worrying About Legal Formalities.