According to the Canada Revenue Agency a sole proprietorship is “an unincorporated business that is owned by one individual. It is the simplest kind of business structure. The owner of a sole proprietorship has sole responsibility for making decisions, receives all the profits, claims all losses, and does not have separate legal status from the business. If you are a sole proprietor, you also assume all the risks of the business. The risks extend even to your personal property and assets.”

Sole proprietors are required to report their income or losses on a T1 income tax and benefit return. You may also have to pay your income tax by installments. We will help you to understand the tax requirements for sole proprietors and help you in making the decision whether to remain a sole proprietor or to incorporate your business.

One of the key lessons learnt by new business owners is the need to have a qualified accountant prepare their taxes. We guide you through the basics of running your own business and help you, not only to remain compliant with the tax laws but also to alleviate the stress of trying to understand your responsibilities of being a business owner so that you can better utilize your time to grow your business.