Before you can start with your business operation, you have to ensure that it is registered. Applications must be filled out and depending on the type of industry you like to be in, you’ll need to have permits and licenses too.
Before you start investing your money on a business, it is crucial to know the legal business structure that’s suitable to your enterprise. As a matter of fact, the decision you’ll make now will affect you big time in the future which is the exact same reason why you should not leave this behind instead, you’ve got to allocate part of your time in doing research to it.
To give you an example, in Ontario, some of the most used business structure includes Sole Proprietorship, Partnership and Company which you will learn more in the next lines.
Number 1. Sole proprietorship – as for this business structure, it means that there’s just one person responsible for the company.
Number 2. Partnership – in this regard, the liabilities, profits, losses, risks and responsibilities are divided into two or more persons.
Number 3. Company – this is much more of a regulated legal entity that is separate from shareholders and officers as well. Few of the common types 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 ensure that you are making the right choice, it will be wise to ask yourself questions like what kind of business you wish to run, are you capable of handling responsibilities alone or would it be smart to share these obligations with a partner, what’s the kind of profit margin and income you deem acceptable, in what way profits will affect your taxes and personal income and so forth.
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. Picking a name that sounds simple is enough but don’t forget that your choice of name should be accepted legally in the country or state you are in. 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 time entrepreneurs, being able to handle business registration on top of hiring employees, leasing building, dealing with legal affairs and everything in between might be too overwhelming. Luckily, you don’t have to bear all these things if you hire corporate service agency.