The form of business (a.k.a. business structure) refers to how a business is legally set up.
In Canada, the common forms of business are sole proprietorship, partnership, and corporation.
There are other forms of business such as limited partnership, cooperatives, and societies as well.
The form of business you choose is one of the most important decisions that you'll make when you're starting a business. Each form of business has its own liabilities and responsibilities.
For instance, while a corporation is more expensive to form and maintain, it provides the business owner with more personal liability protection than the sole proprietorship or common partnership form of business.
The process of creating and registering each form of business differs as well, although the general process of registering each form of business is similar from province to province.
The form of business ownership you choose will affect many aspects of your business's operation, from attracting potential clients through filing taxes.
Don't confuse the form of business with the type of business, such as retail, service, etc. Most types of business can have any form of business.
