5 Key Takeaways on the Road to Dominating Professionals
One of the most important requirements whenever starting a business is to register it. You have to fill out the application and whatever market you are targeting, you may need to obtain a license and permit to operate.
Before you start investing your money on a business, it is crucial to know the legal business structure that’s suitable to your enterprise. Basically, this is a decision that you must not take for granted as the decision you make is going to affect your taxation levels, liabilities, ownership status, succession, disposal of your company if you have decided to sell it in the future and other legal matters.
If you’re living in Ontario for example, you will notice in your research that Sole Proprietorship, Partnership and Company are the most common business structures being applied for.
Number 1. Sole proprietorship – this is a type of business structure in which only one person is carrying the trading responsibilities of 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.
Before starting with the business registration procedure, you must consider all the drawbacks and benefits that each structure offers and then, choose which is the most beneficial to the trade you’ve chosen. By questioning yourself such as your capability of handling responsibilities, are you fine entering a partnership, what kind of business you like to run, what is the kind of profit margin and income is acceptable to you, in what way your profit affect your taxes as well as personal income and the likes can actually help you in guaranteeing that you are only making the right decision.
After you are done choosing the structure for the business, that is the only time where you can move on to the next step of business registration and it is about thinking of what name is appropriate for the industry your business is in. It is good to choose name that sounds simple as it can be recalled easily, however, don’t forget that the name you are about to register is accepted legally. The government doesn’t allow 2 companies to use the same name and if what you are suggesting is taken already, better think of a new 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.
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