Choosing The Right Business Structure

When you are starting a new business, your first decision you have to make is about the business structure that is the most appropriate for your business. we can help you to select the right structure to better serve you and your business some common structures are listed below.

Register as a Corporation, limited liability corporation (L.L.C), Sole-Proprietorship  , Partnership, Not For Profit or Charitable organization in your jurisdiction or worldwide. Registering with us comes with great benefits like a free business plan consultant assistant a free website and more. 

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Open HST, Payroll, Import/Export, Sole-Proprietorship or  Partnership Choose The Right Business Structure, Check Availability Of The Proposed Business Name, Learn How To Choose The Right Business Structure, How To Choose The Right Business Name.  

Most People Chose To Incorporation

A Corporation is special because it is its own legal entity separate from that of who owns its shares.

  Advantages

Limited personal risk. The greatest advantage of incorporation is the limited liability that it confers on shareholders with respect to debts, obligations, and liabilities of the corporation.

Ability to raise capital. The ability to issue various classes of shares with preferences as to dividends, redemption or convertibility and to utilise bonds or debentures greatly enhances a corporations ability to obtain funds for expansion or development.

Possible tax advantages. Small Canadian controlled private corporations are taxed at approximately half the regular rate on the first $500,000 of active business income in each year. A corporation also has additional tax planning and income splitting arrangements available.

Continuous existence & Ownership is transferable. The death or withdrawal of a shareholder does not affect the existence of the corporation, which enjoys perpetual succession.

   Disadvantages

More closely regulated. / More expensive form to organise. / More record keeping is necessary

Sole Proprietorship

If you chose to run the business on your own without a partner, then you will be operating as a sole proprietor.

Advantages

Low start-up costs.

Greatest Freedom from regulations.


Disadvantages

Unlimited Personal Risk. All assets of the owner are exposed to creditors of the business.

Lack Of Continuity

More Difficult to raise funding.

You must report all personal income on your tax return. Very limited tax planning potential.

 Partnership

A Partnership occurs when two or more persons are carrying on business.

Advantages

Ease of formation. A partnership agreement should be prepaid or we can help you prepare one.

Low start-up costs.Limited outside regulations. The business name must be registered.

Disadvantages 

Unlimited personal risk. Each of the partners is personally liable for the full amount of the debts of the partnership.

Lack of continuity. The death or voluntary retirement of a partner dissolves the partnership. An individual interest in a partnership is transferable only with the consent of the remaining partners.

More difficult to raise capital.

Responsibility for your partner’s actions. Unless otherwise stipulated in a Partnership Agreement, each partner is authorised to act on behalf of the partnership and bind it legally.

Very limited tax planning potential. The individual partners must each report their share of the partnership’s income (or loss) as their own, whether or not they have taken any of the profits out of the partnership. A partner is not taxed on draws but on his or her share of the partnership’s income.

Check availability of the proposed business name.  

Choosing the right name is an important decision. You want a name that will draw potential customers, help clients identify your company and build your business image. A name that is easy to remember and provides information about the products or services you offer is always a good choice.  

Name search

Before making a final decision on your business name and ordering forms or stationery, you may want to know if someone else is already using the name. You can do a Preliminary name search that will allow you to check up to 3 names for $15 plus tax. A more accurate N.U.A.N.S search would be advisable if you want to be absolutely sure that your name is not used by someone else. You can order a N.U.A.N.S here. The cost is $39.95 plus tax per each name you search.

Once you have selected your business name we can perform a name search, or to simplify the process, we can do the name search as part of your application form

Once Your Application Sole Proprietorship, Partnership Or A Trade Name You would Receive A Document.

Both documents are legal documents that confirm registration of the business with Ontario government or your selected Location. The Master Business License will be valid for 5 years. Articles of Incorporation are valid in perpetuity.

 For Sole Proprietorship, Partnership or a Trade Name You Will Receive A Master Business License

Expected Costs.  The cost of registering a Sole Proprietorship, Partnership or a Trade Name for 5 years is the same.

It is $150.00 plus applicable taxes. You can also request registration of the necessary tax accounts like HST, Payroll, and W.S.I.B. When you go to the application form you would be able to create your own customised package.

If you choose to Incorporate your business, you will receive a document called Articles of Incorporation.

Expected Costs.  Incorporation services fees. Incorporation cost would range from $700 to $950. based on the complexity and number of partners and shareholders.

However registration never expires, so you pay only once for the entire life of the business.

Incorporate Or Register your business online.