Sole Business in Canada: Simple, But Limited
In this type of business, you are actually working as a natural person and you don’t need to register a corporation. In case of partnership, multiple people sign the partnership. There are standard samples for partnership contract but every group modifies it based on their own needs. In a sole or partnership business, you have complete control over the entire business and your legal issues are reduced. Therefore, you won’t need counselors of business registration for your registration processes.
In overall, it has fewer sidelines. However, less added value is generated as well. In a sole business, taxes are calculated personally, and you don’t pay corporate tax. Also, there is no need for complicated accounting systems.
You may ignore some of the formalities such as designing a header here while you follow them in a corporation.
In a sole business activity, to conduct the banking and business affairs, you can receive a Master License and a merchant ID if you go to the Ontario services. This license is valid for five years and must be extended afterwards.
Getting a register number costs 60 dollars, and there are some service providers which do this for you with a 100-dollar charge. Getting a register number is possible for sole business activities in some municipal centers or state offices and it is valid for 5 years. The extension charge is 60 dollars and you can do the process online. After getting a master license, you can open a business account with the same name you registered in the master license.
Usually while registering a business, you are asked about your activity branch, but it is not the case in Canada that you have to avoid activity in other branches if you announce you are active in one of them. Whether in a sole business or a corporation, you can have activities in different contexts. The important thing is that you should never hide anything because of tax issues.