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Billing & Taxes for Sole Proprietorships
Billing & Taxes for Sole Proprietorships

Here are some helpful tips for billing and taxes when operating your business as a sole proprietorship

Shane Murphy avatar
Written by Shane Murphy
Updated over a week ago

Using "o/a" on Bills & Invoices

"Operating As" allows you to identify yourself and your business name.

Once your business name is officially registered, you are free to conduct business under your chosen name. However, you need to be clear and transparent that you (the business owner) are the one receiving payment.

This can be confusing because your clients may know you under your registered business name. But as far as your bank and the CRA is concerned, that money goes directly to you, regardless of the business name you use.

The solution is to always use "O/A" ("operating as") for all bills and invoices.

For example:

Samir Jacobs o/a Sweetheart Bakery

Rena Tremblay o/a Dedicated Construction Services

Rahul Sanders o/a Reliance Technology Consulting

The point is to clearly identify your legal name and the business name together. There are variations of "O/A" which as equally acceptable like, "DBA" for (doing business as) or "COBA" (carrying on business as).

Filing Personal Taxes

As a sole proprietor, you are required to include all business income on your personal tax return. Unlike income from an incorporated business (which is required to file its own taxes), you are personally accountable for your business income.

Incorporating your business may eventually lead to tax advantages, and you may wish to consider when incorporating will be best for you. Until then, remember that registering a sole proprietorship does not create a separate entity for tax purposes.

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