Sole Proprietorship

Registration of Ontario
Sole Proprietorship: $49*

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The small business owner, who conducts business in Ontario, must register a business/trade name with the Province of Ontario if it is different from his/her own legal name. When one person performs all the functions required for the successful operation of the business this is called a Sole Proprietorship.

For example, if Adam Smith is planning to conduct his business under the name Smart Consulting, he must register it.

Registration of new business names takes 30 minutes to 2 business hours.

Renewal of existing business names takes 1 to 2 weeks.

Ontario Business name registration is valid for 5 years.

If you are going to start your small business with a partner, you should consider registration of an Ontario General Partnership.

Sole Proprietorship

Registration Fee – $49
Government Fee – $60
Registration takes 30 minutes to 2 business hours

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It’s important to know, an owner of a small business is fully responsible for the business debts and obligations by their personal assets. Thus, the business owner has unlimited personal liability.

If you are interested to get a limited liability company protecting you from personal liability for your business, you should incorporate your business.

Benefits

  • Easy and inexpensive to set up

  • Little regulation from the government

  • Directly controlled by the owner/operator

  • Minimal working capital required

  • Business is taxed through owner’s personal income tax, and losses can be used to reduce taxes on other sources of personal income

  • Wages payable to a spouse are deductible from the income of the business

Disadvantages

  • Unlimited personal liability

  • Lack of continuity in business organization in absence of owner

  • Difficulty in raising capital

  • Owners are taxed at individual tax rate, which is much higher than corporate tax rate

Important Notice:

If you need to discuss your personal situation with a lawyer, chartered accountant or tax advisor, our company is able to refer you to a professional who is authorized to practice in Ontario.