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Learning Centre: Sole Proprietorship
What is a Sole Proprietorship?
The most inexpensive process of registering a business, a Sole Proprietorship is a great way for many small business owners to get started. It allows for the flexibility of taking first important steps in registering a new small business with the ability to easily shift gears as the business grows and to register it as a corporation in time.
PROS OF SOLE PROPRIETORSHIPS
PRO #1
As the owner, you have complete ownership, decision making and control.
PRO #4
Business assets are solely owned by the owner.
PRO #2
All of the profits from the business belong to the owner.
PRO #3
Easy and inexpensive set up process.
CONS OF SOLE PROPRIETORSHIPS
CON #1
There is no separation between owner and business. Proprietor means Owner.
CON #2
The owner is fully responsible for all liabilities, debts of the business.
CON #3
The owner is taxed as an employed individual based on all business profits. There are none of the tax benefits that exist with incorporated entities.