If you decide to run your personal business, you may have to learn what enterprise arrangement or sort of company is appropriate for your requirements. The arrangement of one's small enterprise will be dependent upon if you would like to run your company with associates or partners. You can find just four different kinds of small organization structures: cooperatives, corporations, partnerships and sole proprietorship.Forms of Enterprise:
Cooperative is also a type of business structure. In this situation, an association of members own the business. Cooperative is not a widely spread business form, however it is quite relevant in a situation where businesses or group of people want to pool their resources to provide access to mutual needs, for instance, employment, sale of services or products and delivery of services or products.
Incorporation is yet another kind of business structure. It can be done at provincial as well as federal level. The owners and shareholders are separate from an incorporation which is considered a separate legal entity. One is not personally liable for acts, obligations or debts of the corporation as a shareholder. Before incorporating, it is strongly recommended to seek legal advice.
If you do not want to incorporate your business and want to pursue it with a partner, you may opt for partnership. This way, in the business, your partners and your financial resources will be combined. In order to avoid conflicts and disagreements in the future, terms of business can be established with the partner in form of an agreement. This agreement will also dictate the share of profit for you and your partner. A limited liability partnership can also be opted for in these partnerships. In this manner, you’d only be obligated to pay debts to a certain degree and you’d not be manage or control the business. A partnership agreement plays an important role while establishing partnerships, specifically for the following reasons:
Having such a business company, you'd certainly be fully in charge of all obligations and debts associated with your enterprise. Moreover, profits will solely be yours. If you’re a sole proprietor of an enterprise, a creditor may create a claim against your business or personal assets in order to pay off debt.
Deciding on the name of the business and choosing the appropriate business structure is important before getting your business registered.
We can assist you in finding the correct business structure for you.
Contact us for further assistance and special packages.(416) 925-2927