As an entrepreneur, the first big hurdle when it comes to starting a business is deciding what business structure you want to adhere to. Different business organizations have different legal and financial responsibilities that go with them. The type and amount of work and money required to get started can also vary, so it’s an important decision to make.
Choosing the right business structure for your new entrepreneurial endeavour will determine how you interact with your business, your administrative and accounting requirements, how much you’ll pay to get started, and what the future of your business may look like.
As a brand new business owner, it’s important you know the different types of business structures that exist in Canada:
What is the most common type of business organization?
The most common type of business organization in Canada is a sole proprietorship, which we explain in more detail below.
Types of business organizations
There are four main types of business organizations in Canada to choose from: