Is your Sole Proprietorship claiming the small business deduction? Can you be?
The most common forms of business arrangements are a sole proprietorship or corporation. But is that the right structure for you?
A sole proprietorship is the most basic form of business organization and can be used in a wide variety of circumstances.
A sole proprietor occurs when one person acting alone, pursues a business endeavour with a view for profit. A sole proprietor is not a corporation, but must be assigned a Business Number (BN) from the CRA. A sole proprietor files his or her business taxes together with his or her own T1 tax return by completing an additional scheduled called a form T2125.
Click here for more information about each type of structure.