5 Best Benefits of Sole Proprietorship

by | Jun 3, 2022

If you want to start a business, a sole proprietorship is a way to go. Some of the best benefits of sole proprietorship are: being your own boss, being in complete control of your business and its finances, and bearing the expenses of ownership. Some other best benefits of sole proprietorship include having no obligation to shareholders or owners outside yourself and having flexibility in hiring staff/business partners. By reading this article by Yogi & Associates, you will get to know about the 5 best benefits of sole proprietorship.

The word “sole” means “relying on only one person; being entirely committed to one person or thing;” so a sole proprietorship is a business where you are the one and only owner, shareholder, director, and manager.

So, if you need to know about the best benefits of sole proprietorship you can get, Yogi & Associates has an easy guide for you. The guide outlines the process and explains the 5 best benefits of sole proprietorship. It will make you aware of how you can actually get benefits from sole proprietorship and help you decide if you should go for it or not. Once the plan is final, it can be filed to set up a business in Canada. Our accountants in Mississauga can supply all of your needs. So, stop the guessing game and start your business in Mississauga!

 The sole purpose of business is service. The sole purpose of advertising is explaining the service which business renders.Leo Burnett

5 Best Benefits of Sole Proprietorship: A Free Guide

1. One Man Ownership

2. Easy and Affordable

3. Fewer Formalities

4. Tax Benefit

5. Inheritance and Sale

Here are the 5 best benefits of sole proprietorship for your business.

1. One Man Ownership

A sole proprietorship is a special kind of business form in which a single individual, who is the owner and managing director of the business, personally manages it. In other words, you can be your own boss. So, if you want to manage your business affairs yourself and have full decision-making power, this is the way to go.

2. Easy And Affordable

In Canada, starting a business as a sole proprietor is relatively simple and inexpensive. Furthermore, there are minimal start-up expenses, which may consist of little more than necessary equipment, such as a computer and software, advertising, or selling things.

3. Less Formalities

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

4. Tax Benefit

An advantage of a sole proprietorship is that there is no separate tax return need to be filled. Moreover, the owner and the business have the same assets, liabilities, expenditures, capital, and income. In addition to this, the tax return of the sole proprietor is also the tax return of the business. 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, which means that you personally own the entire business and have full responsibility for its day-to-day running. 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, which is a common practice.

Benefits of Sole Proprietorship

If you want to learn how you can start your business as a sole proprietorship in Canada, you can read our article by clicking How to start your business in Canada?

Conclusion:

Starting your own business can be a great way to make money while working at your own pace. In this form of business, the sole proprietor assumes all risk and liability and is also the sole claimer of the profit. So, starting a sole proprietorship is not as hard as 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 5 best benefits of sole proprietorship. So, don’t be nervous, have no fear, and contact us at Yogi & Associates today!