To make a company, To register a business. Consider the following types available to Canadians:

1. Sole Proprietorship

Overview: A sole proprietorship is the simplest and most common business structure. It's owned and operated by one individual, and there's no legal distinction between the owner and the business.

Key Features:

• Easy to set up and low cost.

• The owner has full control over business decisions.

• Profits are taxed as personal income.

• Unlimited liability: the owner is personally responsible for all debts and obligations.

Best For: Small, low-risk businesses like freelancers, consultants, or small retail operations.

2. Partnership

Overview: A partnership is formed when two or more people join to run a business. There are two main types of partnerships: general partnerships and limited partnerships.

Key Features:

• General Partnership: All partners share equal responsibility for the business and its liabilities.

• Limited Partnership: One or more partners have limited liability and don’t participate in daily operations.

• Profits are shared based on the partnership agreement and taxed as personal income.

• Requires a formal partnership agreement to outline roles, responsibilities, and profit sharing.

Best For: Businesses with multiple owners, like law firms, accounting practices, or startups pooling resources.

3. Corporation (Incorporated or Limited Company)

Overview: A corporation is a legal entity separate from its owners. It can own property, enter contracts, and is responsible for its debts.

Key Features:

• Limited liability: Shareholders (owners) are only liable for the amount they’ve invested.

• More complex and expensive to set up and maintain than sole proprietorships or partnerships.

• Can raise capital by selling shares.

• Pays corporate taxes, which can be lower than personal income tax rates.

• Requires annual filings and financial reporting.

Best For: Businesses looking to scale, attract investors, or reduce personal liability, like tech startups or large enterprises.

4. Cooperative

Overview: A cooperative (co-op) is a business owned and controlled by its members, who share in its profits. It operates on a democratic principle: one member, one vote.

Key Features:

• Profits are distributed to members based on their level of participation.

• Limited liability for members.

• Typically formed for mutual benefit, such as farmers pooling resources or housing co-ops.

• Requires formal incorporation under co-op laws.

Best For: Groups or communities coming together for shared goals, like agricultural co-ops or credit unions.

5. Limited Liability Partnership (LLP)

Overview: An LLP is a partnership where each partner is protected from personal liability for certain business obligations or the negligence of other partners.

Key Features:

• Limited liability for partners.

• Commonly used by professionals like lawyers, accountants, and architects.

• Requires registration under provincial laws.

• Similar to a general partnership but with liability protections.

Best For: Professional services with multiple partners, where legal liability is a concern.

6. Nonprofit Organization

Overview: A nonprofit organization operates for purposes other than generating profit, such as charitable, educational, or social causes.

Key Features:

• Can be incorporated or unincorporated.

• Profits are reinvested in the organization’s mission rather than distributed to owners or shareholders.

• May qualify for tax-exempt status.

• Requires strict compliance with laws governing nonprofits.

Best For: Charities, community organizations, or advocacy groups.

7. Franchise

Overview: A franchise allows you to operate a business using the name, branding, and business model of an existing company.

Key Features:

• Franchisee pays fees and royalties to the franchisor.

• You gain access to an established brand and support systems.

• Must follow strict rules set by the franchisor.

• Liability and legal obligations vary based on the franchise agreement.

Best For: Entrepreneurs who prefer a proven business model, such as owning a fast-food chain location.

Key Considerations When Choosing a Structure

1. Liability: How much personal risk are you willing to take?

2. Taxes: Different structures have different tax obligations.

3. Complexity: Some structures, like corporations, require more administrative work.

4. Funding: Do you need to raise capital? Corporations and co-ops are better suited for this.

5. Growth Plans: Are you planning to expand your business significantly?

Each structure has its pros and cons, and the best option depends on your goals, resources, and long-term vision.