5 Benefits of Sole Proprietorship: Best Guide of 2020

by | Jun 3, 2022

If you want to start a business in Mississauga, a sole proprietorship is a way. The word “sole” means “relying on only one person; being committed to one person or thing;.” A sole proprietorship is a business where you are the one and only owner. You are the shareholder, director, and manager of your company.

As a sole proprietor, bookkeeping is crucial to run your business. With bookkeeping, you can collect all the transactions of your business. So, update your bookkeeping records, which is the key to running your business. However, bookkeeping can seem daunting and overwhelming. So if you need help, you can always come to Yogi & Associates. We can provide you with a perfect bookkeeping system with the help of our accountants.

1. One Man Ownership

In a sole proprietorship, a single person is the owner and manager of the business. In other words, you can be your own boss if you want to manage your business affairs and have full decision-making power.

2. Easy And Affordable

Starting a business as a sole proprietor in Mississauga is simple and inexpensive. Furthermore, there are minimal start-up expenses. This includes equipment, such as a computer and software, advertising, or selling.

3. Fewer Formalities

There are fewer formalities and less paperwork in this kind of business. So you will have time to focus on your business rather than fulfilling other formalities.

4. Tax Benefit

An advantage of a sole proprietorship is that no separate tax return needs to be filed. The owner and the business have the same assets, expenditures, and income. The sole proprietor’s tax return is also the business’s tax return. So, it sometimes reduces your tax liability and sometimes results in a tax refund.

5. Inheritance and Sale

A sole proprietorship is an informal or ‘self-employed’ business. This means you own the entire company and are responsible for its operations. You can run a sole proprietorship for as long as you like and then cash in and sell it when it’s time to retire. Even a sole proprietorship can be passed down to an heir, a common practice.
To learn how to start your business as a sole proprietorship, you can read 10 easy steps to start your business in Canada.

6. Sole Proprietorship & Bookkeeping= A Perfect Match:

Bookkeeping is an essential part of running a business. You can manage your finances and file your taxes using bookkeeping. So, updating your bookkeeping daily is vital if you want your company to run. However, we understand that maintaining a bookkeeping system can be time-consuming. So Yogi & Associates is here to help you with your bookkeeping needs! Our bookkeeping knowledge and experience will assist your company in meeting its financial commitments.

The Bottom Line:

The sole proprietor assumes all risk and liability and is also the sole claimer of the profit. So, starting a sole proprietorship is easier than it first seems. Our accountants in Mississauga have an easy guide for you on the benefits of setting up your own business, as they have explained well enough about the advantages of a sole proprietorship. So, please don’t be nervous, have no fear, and contact us at Yogi & Associates today!

Get in touch with Yogi & Associates!