Alternatively, you may register a trade name. With a proprietorship, your business income is your personal income. It will be reported on your personal income tax return and will be taxed at personal income tax rates. The advantages of starting a proprietorship are many. Start-up costs are low.
Proprietorship is the least expensive way of setting up a business.
It allows for simplified filing procedures and the owner is in direct control of decision making. All profits from the business go to the owner. There are disadvantages to sole proprietorship as well. There is, for instance, a lack of continuity of the business in the absence of the owner. Perhaps the biggest disadvantage however, is the unlimited liability you will face as a proprietor.