Three Choices of Legal Structures in Canada 

If you are operating a business in Canada, you have three choices in terms of the legal structure:

1. Sole Proprietorship
2. Partnership
3. Corporation/Company

Sole Proprietorship - Pros and Cons

 As a Sole Proprietorship, the business is NOT a separate legal entity.  The business owner directly owns the assets of the business and is directly responsible for the liabilities of the business.  If the business has a separate name from the owner’s name, you need to register the business name with the applicable Corporate Registry.

Pros:  

• Simple to Form
• Least Expensive
• Easy to Wind up if Business Ends 

Cons:

• No Liability Protection
• No Potential Tax Planning Benefits
• Only Suitable for One Owner

Tips for Reducing the Potential Liability of Sole Proprietorships

The lack of liability protection is the biggest potential CON of a sole proprietorship.  A business owner can reduce the risks...

Congratulations on starting your online business.  Whether you have been running this business offline for a while or whether this is a brand new business to you, there are a lot of things to think about legally, especially for Canadian online businesses.

This article will help you understand what you need to do legally to protect yourself and your business and to set yourself up for success on a strong legal foundation.

The Four Legal Protections To Put On Your Website

When you have an online business, your website is where you welcome new people.  It’s like your storefront on the internet.  You may have spent some time making your website look sharp and tweaking your message and content, but you also need these four legal things:

1. Privacy Policy - You are required by law in Canada (PIPEDA and provincial laws) to have a privacy policy when you are collecting “personal information”.  Your privacy policy will contain certain information including...