NOTICE TO READER
The information in this article is a brief summary for informational purposes only and is only applicable in the Province of Ontario. It is not meant to be legal advice. If you require information or advice about starting a business as it relates to your individual circumstances you are advised to consult with the Law Office of Peter Cusimano or speak to your own lawyer.
Forms of Business Organization in Ontario, Canada
by: Peter Cusimano, B.Sc., LL.B.; Toronto Business Lawyer
The Key to Success
Almost everyone at some point has an idea to start their own business. Starting your own business can be one the most rewarding experiences. However, without careful planning you will most certainly have great difficulty. Whether your plan is to run a part-time business out of your home to help you earn extra income or your plan is to start the next Fortune-500 company, you must address some legal matters to start your business and keep it running smoothly.
Methods of Carrying On Business
Before you can start, you must consider the legal form that you wish to carry on business. There are several common methods of carrying on a business for profit. These are: (a) sole proprietorship, (b) partnership, (c) corporation, (d) franchise, (e) limited partnership, (f) co-ownership, (g) licence, (h) joint venture. The legal characteristics of the first 3 methods are discussed below.
Which Method is Best for You
Which method is appropriate for you requires careful consideration of among other things: your goals, your current financial situation, the nature of your business, expected sources of financing, number of people involved and the relationship of the parties. Consultation with an accountant is advisable to consider the income tax implications of the various forms of business.
Consultation with the Law Office of Peter Cusimano
I will help you through the maze of going about setting up and maintaining your business. When I meet with you I will examine your goals, your current financial situation, the nature of your business, expected sources of financing, number of people involved and the relationship of the parties. In addition, I will consult with your accountant to consider the income tax implications in choosing the most appropriate form of business for your business.
I will prepare and file all paperwork necessary to help you begin your business. By letting me do the legal work, you can have peace of mind and concentrate on your business.
Helping Your Business Prosper
After you have started your business, I can also help you in many other areas to protect your hard earned dollars and invested time. I can prepare your contracts to help protect you collect from non-paying customers and reduce disputes with customers. I will also review any contracts that you enter into including reviewing your lease, banking documents, and supplier contracts. I will ensure that before you sign any documents they are written in your favour so that if your suppliers do not deliver on time or deliver defective products to you, you will be protected. If you are planning to hire employees, I can prepare employment contracts for you that are designed to protect you from your employees stealing your valuable ideas and confidential customer information and using it to set up their own competing business or providing it to your competition.
Next topic (Sole Proprietorship)
Revised: November 11, 2015.
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