Determine your Business Structure
Ownership will depend on the structure of the company and there are a number of options available. The type of structure you choose for your business effects the way you report your income. how you will file tax returns each year, and many other matters. Knowing what these options are and determining the appropriate structure beforehand can require a discussion with an accountant or lawyer.
Types of Business Structure
- Sole Proprietorship is an unincorporated business that is owned by one person. The owner of a sole proprietorship has sole responsibility for making decisions, receives all of the profits, claims all losses, and does not have separate legal status from the business.
- Partnership is an association between two or more people who join together to carry on a trade or business. Each partner contributes money, labour, property, or skills to the partnership.
- Corporation is an incorporated entity with its own rights and responsibilities as a distinct person under the law. A corporation is owned by the shareholders and managed by directors chosen by the shareholders. The owners of a corporation are not personally responsible for the debts of the corporation. The corporation is responsible for its debts.
Determine your Business Structure – Frequently Asked Questions
- Frequently Asked Questions – Starting a Small Business
- 10 Steps to Starting a Business – Infographic
- Setting Up Your Business (canada.ca)
Mississauga Business Enterprise Centre (MBEC)
Whether you are starting or growing your business, we can help! MBEC is your central source for small business information, resources and guidance. We’ll answer your questions about registering and starting a new business, preparing a business plan, taxes, government regulations, available government programs and much more! If you have a question, or would like to contact us, please submit an inquiry or visit the MBEC office at the Mississauga Central Library (4th Floor).