Before you can start with your business operation, you have to ensure that it is registered. Applications have to be filled out and depending on the industry you want to tap in, licenses as well as permits have to be obtained.
Before you start investing your money on a business, it is crucial to know the legal business structure that’s suitable to your enterprise. It’s basically a decision that you have to do research because the decision you make will affect your taxation levels, liabilities, ownership status, succession, disposal of your company if you have opted to sell it and several legal matters.
To give you an example, in Ontario, some of the most used business structure includes Sole Proprietorship, Partnership and Company which you will learn more in the next lines.
Number 1. Sole proprietorship – this is a type of business structure in which only one person is carrying the trading responsibilities of the company.
Number 2. Partnership – if you are in a partnership structure for example, then all the liabilities, profits, losses, risks and responsibilities are shared between or among your partners.
Number 3. Company – this is more of a regulated legal entity that’s separated from its shareholders and officers. Handful of the usual types of this structure are proprietary and public companies.
Just before you get started with your business registration procedure, you have to consider all possible benefits and drawbacks of each structure and pick one that’s most advantageous to your chosen trade. To be certain that you are only making the right choice, it is smart to ask yourself several questions similar to what type of business you like to run, can you handle the responsibilities by yourself or do you feel more comfortable sharing it with a partner, what is the kind of profit margin as well as income you see acceptable.
As soon as you’ve settled on what structure is best for you, you can now proceed to the next step of your business registration and that is to think of what name is appropriate for the nature of your business. Choose a name that’s easy to recall however, you should not forget as well that the name you pick must be legally accepted in the place where you live. There should be no two companies have the same name and if your suggestion has been listed officially, then you’ve got to think of a different name or perhaps, change your original plan.
For first timers in business, handling business registration aside from hiring employees, leasing building, etc. can be quite overwhelming. Luckily, you don’t have to bear all these things if you hire corporate service agency.