Sole
Proprietorship

Why register a Sole Proprietorship?

If you would like to start a new business with minimal startup costs you could consider registering a Sole Proprietorship, it is an inexpensive way to successfully start a business.

A Sole Proprietorship is when one person will perform all duties and tasks for the company.

How long does it take to register a Sole Proprietorship?

• Alberta – 1 to 2 business days
• British Columbia – 10 to 15 business days for regular processing, expedited services in 1 to 2 business days are available for an additional fee
• Manitoba - 5 to 10 business days for regular processing, expedited services in 1 to 2 business days are available for an additional fee
• New Brunswick – 7 to 10 business days
• Nova Scotia – 2 business days for the name reservation and an additional 5 to 10 business days for the registration
• Ontario - 2 business hours
• Prince Edward Island – 5 to 7 business days
• Saskatchewan – 5 to 7 business days

Does a Sole Proprietorship Expire?

Yes, some provinces limit the validity of the Sole Proprietorship. In the following provinces Sole Proprietorships are valid for:

• Alberta – no annual renewal fee, registration is valid until you file dissolution
• British Columbia – no annual renewal fee, registration is valid until you file dissolution
• Manitoba – valid for 3 years and then requires a renewal
• New Brunswick - valid for 1 year and then requires a renewal
• Nova Scotia - valid for 1 year and then requires a renewal
• Ontario – valid for 5 years and then requires a renewal
• Prince Edward Island – valid for 3 years and then requires a renewal
• Saskatchewan - valid for 3 years and then requires a renewal

What are the benefits of a Sole Proprietorship?

• Inexpensive start up cost
• All profit from the Sole Proprietorship is taxed through your personal income tax. Any business expenses and losses can be used to reduce taxes in your personal income
• If your spouse is an employee their salary is deductible from the income of the business

What are the disadvantages of a Sole Proprietorship?

• The name of the Sole Proprietorship is not protected. Should you wish to protect your company name you could consider incorporating a company.
• You are personally liable for all business debts and obligations
• Sole Proprietorships do not have shareholders making it difficult to raise capital
• The Sole Proprietor is taxed at personal tax rates, which are higher than corporate income tax rates