A sole proprietorship is an unincorporated business that is owned by one individual only. While it is the most simple of the types of businesses, it also offers the least amount of financial and legal protection for the owner. Sole proprietorships do not create a separate legal identity for the business.
Therefore, the owner is fully liable for any and all liabilities incurred by the company. An entrepreneur may choose this option if they want to retain full control of the business. Additionally, it is a relatively easy and inexpensive process to establish a sole proprietorship. There are also tax benefits, as income is considered the owner’s personal income and therefore only taxed once.
Attributes of Sole Proprietorship
- Easy to registered
- Unlimited personal liability
- Only register under provincial government.
- Simple personal tax structure
- No name protection
- Single owner
- Ownership can not transfer