Document background
The Sole Proprietorship Operating Agreement is a foundational document for individual business owners operating in Canada who wish to establish clear guidelines and procedures for their business operations. While not mandated by Canadian law, this agreement serves multiple crucial purposes: it creates a clear separation between personal and business assets, establishes operational procedures, defines financial management practices, and sets risk management protocols. It becomes particularly important when seeking business loans, insurance coverage, or planning for business succession. The agreement should be tailored to comply with both federal Canadian legislation and specific provincial requirements where the business operates. It's commonly used by entrepreneurs starting new businesses, professionals establishing private practices, and existing business owners looking to formalize their operations.
