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Susan Ward

Step 4 to Starting a Business: Choosing a Form of Business Ownership

By February 2, 2014

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One of the first decisions you have to make when you're starting a business is about what legal structure your new business will have.

In Canada, you essentially have four choices, a sole proprietorship, partnership, corporation or cooperative. But which form of business ownership should you choose?

Choosing a form of business ownership.

You need to give it some thought because the form of business ownership you choose will affect everything from the administrative costs of setting up and operating your business through your tax planning.

Choosing a Form of Business Ownership lays out the advantages and disadvantages of each type of legal structure to help you decide.

If you are considering incorporation, you will also want to read Should You Incorporate Your Business?

Remember, though, that whatever form of business you choose, you are not locked into that form for the life of the business. Many people, for instance, start businesses as sole proprietorships and then incorporate them later when their circumstances change.

Once you've decided, registering your business is the next step. Visit the Business Registration section of this website to find details on how to register your business in your province.

More of the Steps to Starting a Business in Canada

Image (c) George Doyle / Getty Images

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February 13, 2013 at 6:37 pm
(1) Small Business Loans says:

Your form of organization really matters in protecting your business, your person assets and your tax liabilities. Plus, it is not hard to form the organization of your choice as the IRS and state governments make it easy and inexpensive as well as provide tons of information to help you stay abreast of the law. Better to spend a little time now protecting your business then wasting time later defending it. Lastly, some small business lenders will only provide business loans to legally formed organizations.

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