SOLE PROPRIETORSHIP vs. PARTNERSHIP

Sole Proprietorship vs. Partnership

Sole Proprietorship or Partnership—which is better? The choice between the two will depend on how you want to structure your business. If you prefer to be the sole owner of the business with 100% decision-making power and making 100% profits or losses? Then you should choose a sole proprietorship. If you prefer to share decision-making powers, profits, risks, losses and liabilities with another person, then a partnership should be your choice.

Ultimately, the choice between a sole proprietorship and a partnership will depend on your business goals, the level of your risk tolerance, and your desired degree of management control.

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Written by Jumi Odepe, Principal Lawyer, Jode Law

The business lawyers at Jode Law understand that the Canadian business law landscape could be complex. If you want to start your business or draw up a partnership agreement, contact our lawyers via email at lawyers@jodelaw.ca

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