TYPES OF BUSINESS STRUCTURES
There are a number of different types of business structures that can be used to operate a business in Canada.
The most simple is a sole proprietorship. The person operating the business is also the owner. There is unlimited liability. All of the profits and losses are received by the sole proprietor.
Partnership involves a minimum of two persons or companies working together to operate a business. There is unlimited liability for each partner. All of the profits and losses are received and split between the partners. Most people prefer to have a partnership agreement that will establish the rights and obligations of the partners.
Limited partnership involves a minimum of two persons or companies. The partners liability is limited as per the portions set out by the limited partnership agreement. The profits and losses are also limited as per the terms of the limited partnership agreement.
Incorporation of a company will allow a person to limit the liability to the company.
The company will provide flexibility for retaining earnings and tax deferral as well as lower taxes if money is taken out as a dividend.
A joint venture is a business association formed generally for a single purpose or project that has its terms set out in a joint venture agreement.
There is a wide variety in the liabilities and benefits of each of the above business structures. You should have a lawyer examine your situation and advise you as to what is best for your needs and situation.
Brian Edward Tadayoshi Tsuji
Canadian Immigration Lawyer
2800 Park Place
666 Burrard Street
Vancouver, British Columbia, Canada, V6C 2Z7
Tel:(604) 643-6496 Fax:(604) 605-3596