There are different legal ‘structures’ or ‘forms’ your business could take, such as sole proprietorship, partnership and corporation. There are advantages and disadvantages to each structure. Before choosing a business structure, there are many things to consider, including the following:
The level of control each person is to have;
Costs of setting up and maintaining the business;
Legal issues specific to the form of business, such as whether you can be held personally liable for the business’ debts and torts;
Flexibility and adaptability for the future.
Any type of business can be incorporated, except for a few types like banking, non-profits, mortgage companies and insurance companies, which need to be ‘incorporated’ in a different manner than usual. In order to incorporate, you need to:
Decide whether you want to incorporate federally or provincially;
Decide on the composition of the board of directors;
Decide on the share structure;
Prepare Articles of Incorporation;
Pick an acceptable corporate name;
Register your corporation in the applicable corporate registry.