Business Registration 

 

When you are starting a new business, the first decision is determining the business structure that is most appropriate for your organization. There are essentially four forms of business ownership in Canada:  Sole Proprietorship, Partnership, Corporation and the Cooperative.

 

We will help you to identify the most appropriate form of business, based on your needs. We will also assist you in the process of business registration, including registration for HST, payroll, import/export for trade and WSIB.

 

Main advantages and disadvantages of each of these forms of business ownership:

The Sole Proprietorship

Advantages

  • Easiest form to set up

  • Owner solely controls the business

Disadvantages

  • Unlimited liability

  • Can be hard to raise capital

 

The Partnership

Advantages

  • Shared risk

  • Shared management

Disadvantages

  • Risk of conflict between partners

  • Shared decision making

The Corporation

Advantages

  • Limited liability

  • Easier to raise capital

Disadvantages

  • Most expensive form of business to set up

  • Involves extensive paperwork

The Cooperative

Advantages

  • Owned and controlled by its members

  • Limited liability

Disadvantages

  • Decision making can be slow

  • Risk of conflict between members

Incorporation creates a distinct legal entity separate from its shareholders/owners. Limited liability is one of the primary reasons that businesses prefer incorporation. The shareholders are generally not personally liable for the company's debts, obligations, or other acts. A shareholder is only liable for the unpaid portion of shares owned. Businesses can be incorporated provincially, giving a company the right to operate in a particular province. Federal incorporation allows a company the right to operate throughout Canada.