To Incorporate or Not
One of the first questions that I get asked by those planning on starting a new business is about the business structure. Should I incorporate or register as a sole proprietor? The typical answer is it depends!
As a Small Business Accountant and Chartered Accountant, I can help you decide. From a legal point of view, there are three common types of businesses:
- Sole Proprietorship
1.Sole Proprietorship – Going Solo
Choosing to do business as a sole proprietor is your simplest option, and the one that many small business owners choose as they are starting up. It is the most commonly selected structure and the easiest to set up. You can also decide later to change the structure as your business grows.
Partnership - Teaming up
A partnership is a group of two or more people who set up a business together. If you are forming a
partnership, finding the right person or people is essential. You want to be in business with someone you
can trust and with someone that you can work with in good times and bad.
Corporation – Incorporating
A corporation is a separate legal entity from you and is set up formally with a certain number of shares
and shareholders. You can get a salary or a dividend from your corporation