If you are starting a business, one of the first steps is to decide the type of business you should register. Usually, a startup business is registered as a sole proprietorship or corporation if you are the only owner. It there are multiple owners, then you may register your business as a partnership or a corporation. If the aim of forming a company is not to make financial gains to the owners, then a not-for-profit company is the correct choice.
Sole Proprietorship/Trade Name
➤ Sole proprietorship is the simplest form of business can owned by one person or Corporation
➤ Also called Trade name registration, business name, 'Doing business as'(DBA)
Limited Liability Partnership (LLP)
➤ Limited Liability Partnership is formed by 2 or more professionals
➤ Only for professions:Lawyers, CPA, CGA, Engineers, Health & Medical, Artichects, etc.
General Partnership
➤ A Partnership registration is suitable for 2 or more people forming a business with equal contribution
➤ Partners usually share the profit equally. At least one Partners must be a Canadian resident
Incorporate a Business
➤ Corporation is suitable for one or more people forming a company with limited liability
➤ A corporation can be formed by one or more than one individuals
Limited Partnership (LP)
➤An LP should have a minimum of one general partner and one limited
partner
➤General partner operates the business while the limited partner is the investor
Personal Real Estate Corporation
➤ A Personal Real Estate Corporation is formed by a real estate sales person or a broker
➤ The real estate salesperson owning the PREC license must be the sole voting shareholder