Registering a business is the most important requirement you’ve got to secure before officially opening it. 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.
If you’re living in Ontario for example, you will notice in your research that Sole Proprietorship, Partnership and Company are the most common business structures being applied for.
Number 1. Sole proprietorship – as for this business structure, it means that there’s just one person responsible for 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 – for this type, it is basically a regulated legal entity which also has a separate set of officers and shareholders. Handful of the usual types of this structure are proprietary and public companies.
Prior to processing the business registration, it is integral to take a look at the possible benefits and drawbacks as well of every given structure and then, choose one that will bring the most positive impact to your 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. No companies must carry the same name and in the event that your suggestion is listed already, then you better think of a different name.
For first timers in business, handling business registration aside from hiring employees, leasing building, etc. can be quite overwhelming. The good thing is that, hiring a corporate service agency can lessen the stress felt.