Want to know what business structure will fit your needs best? A proprietorship is a sole ownership (one owner). Your financial information is reported on your personal income tax return along with a December 31st year-end. A partnership structure involves more than one owner. If you move from a proprietorship to take on a partner, you must start a new set of books, because you are considered a new business. You must apply for new CRA registrations for filing payroll and GST reports.
Proprietorships and partnerships are the two most common structures, but as your business becomes more successful, incorporating is a possible solution to bring in owners via a shareholder structure and move capital more conveniently. Each structure has a different fit. At Lavery & Co Inc., we would like to find the best fit for you.