Is sole proprietorship a profitable one?


#1

“Hi,
I own a small toy manufacturing business in Ontario. I have a plan to renew my business. Now it’s run by me and 3 of my friends. Since my friends are starting a new business, it needs to be handled by me. For that, it is necessary to change it to a sole proprietorship business. When enquired I came to know that this sole proprietorship offers many benefits. Even the registration is inexpensive and it has a validity for 5 years. Quite a profitable one right?
So we are thinking of changing it by next month. For that, we are in search of a sole proprietorship business registration service providers. We require someone who could complete the process of registration as soon as possible. We prefer registration service providers who could provide complete assistance and guidance for the renewal of our business. If anyone knows any sole proprietorship business registration service providers, please refer their names.
Thank you!”


#2

Yes, I agree with your thoughts. Definitely sole proprietorship is a better choice to go for. The numerous advantages makes it a good option to prefer:

  1. There is no separate cost is required
  2. No separate license is required
  3. It will be maintained as the owner keeps doing business
  4. Tax advantages compare to other business entities as no separate tax filing required
  5. Avoid double taxation on business income
  6. 100% profit own
  7. 100% ownership on your firm

However, there are numerous disadvantages too for sole proprietorship that can’t be ignored:

For any business finance, debt or obligations, the owner will be only liable person. Also if one having sole proprietorship and wishing to include another one then he/she must dissolve the sole proprietorship and will be required to start business in general partnership as a new business entity.

For your second query, For sole proprietorship business registration in Ontario you may take help from here:
https://www.incorpdirect.ca/Ontario-Sole-Proprietorship