Sole proprietors operate under their personal legal identity, meaning there is no separate legal entity for the business.
Business names for sole proprietorships must be registered with the provincial or territorial business registry if they are different from the owner’s legal name.
Sole proprietors can choose a custom business name or operate under their personal name without requiring registration (e.g., "John Smith" vs. "Smith Consulting").
The business owner is personally responsible for all debts and liabilities of the sole proprietorship.
Sole proprietorships have simpler tax and regulatory requirements compared to corporations, with business income reported on the owner’s personal tax return.
A sole proprietorship is the simplest business structure, owned and operated by one person. If the business is conducted under the owner’s legal name, registration under the Business Names Act is not required. However, using a trade name requires registration, allowing for a branded identity.
Business name registration must be completed in each province where the business operates, with Ontario issuing a Master Business Licence (MBL) as proof. In Ontario, the registration must be renewed every five years. Despite this requirement, a sole proprietorship remains easy to establish and manage, without the formalities of incorporation.
The owner has full control over the business, keeping all profits but also assuming full liability. Since the business has no separate legal status, the owner is personally responsible for debts, meaning personal assets, including their home, could be at risk if the business faces financial trouble.We have created a concise course with guidance which you can reference here: Business Registrations and Incorporations.
Download a list of the information that you will need to register your business here: