Diana Young Professional Corporation

Barristers, Solicitors, & Notary Public

Sole Proprietorship

Sole Proprietorship sometimes is simply called Sole Ownership. Sole proprietorship is the simplest way to set up a business structure with only one individual as owner of the business. A sole proprietor - the owner of sole proprietorship is fully responsible for all debts and obligations related to his or her business. A creditor with a claim against a sole proprietor would normally have a right against all assets of the owner, whether under business name or under personal name, i.e. the sole proprietor has potential of unlimited liability.

The name of a sole proprietorship can be the owner's own name or a name chose by the owner. If the sole proprietor chooses to carry on a business under a name different from his or her own name, he or she must register with the government under the Business Names Act. If a sole proprietor chooses to carry on a business in his/her own name, without having extra words added to his or her name as business name, it is not necessary to register his or her name with government. Business name registration has to be renewed after five years of its registration.

HOWEVER, registration of the business name with government does not officially preventing others using the same name in Ontario. Ontario government has no responsibility to prevent others using the same name which was registered by you, on the other side, Ontario government has obligation advise you that the name chose by you has been registered by the others and prevent you to register and use the name at your choice.

The registration process of sole proprietorship in Ontario is similar to that of a partnership.

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