---
link: https://www.canada.ca/en/revenue-agency/services/tax/businesses/small-businesses-self-employed-income/setting-your-business/sole-proprietorship.html
tags:
  - SMB
  - Canada
  - legal
---
> 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.
> 
> If you are a sole proprietor, you pay personal income tax on the net income generated by your business.
> 
> You may choose to register a business name or operate under your own name or both.
> 
> If you operate as an individual, just bill your customers or clients in your own name. If you operate under a registered business name, bill your clients and customers in the business's name. If your business has a name other than your own, you'll need a separate bank account to process cheques payable to your business.

[[Ownr]] makes it easy to register a name and setup a business bank account.