LEGAL FORMS OF BUSINESS


What types of businesses are there in Canada? What is the most appropriate type of form for me?

LEGAL FORMS OF BUSINESS IN CANADA

  1. SOLE PROPRIETORSHIP
  2. PARTNERSHIP
  3. CORPORATION


1. UNINCORPORATED SOLE PROPRIETORSHIP

 

ADVANTAGES of SOLE PROPRIETORSHIP




2. PARTNERSHIP

TYPES OF PARTNERS:


GENERAL PARTNERS
-unlimited liability-personally liable
-partner may have to sell personal possessions to satisfy debts of company
-they run the business

 

LIMITED PARTNERS
-limited liability
-buy part of partnership, but liable only to the extent of OWN investment
- limited partners do not participate in day-to-day operation (see Limited Partnership Act)

-tax regulation allows limited partner to write off loss vs personal income


ADVANTAGES OF PARTNERSHIP


**THERE IS NOTHING MORE IMPORTANT THAN CHOOSING THE RIGHT PARTNERS!!



3. CORPORATIONS


WHEN DO SMALL BUSINESS VENTURES INCORPORATE?

  1. danger with regard to personal liability ( a product or service or employees could cause harm and leave business open to legal action
  2. a large capital investment required to sustain/ promote business
  3. specialized management expertise by non-owner required

CLICK HERE FOR FORMS OF BUSINESS COMPARISON CHART

 



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