The first step is to decide on a name for business In Canada and what its legal status will be.
Sole Proprietorship (personal name) is used as a simple means to start a business. This means that all personal and company assets and liabilities are under the personal name. The bank account , tax account, leases, assets, bills remain under the owners personal name. All legal documents are signed personally.
Partnership is used when more than one person owns the business. Owners have personal financial interest and liability . Profit or loss at the end of the year is shared by owners on their personal taxes. As well as any liabilities or obligations.
Master Business License is registered with the government when the owner(s) want to share financial interests and Liability with the business while
creating a visual separation of sorts. The business is able to have an operating name, open up bank accounts, tax accounts, legal documents , while they
are responsible for all debts and obligations of the business.
LLC Incorporated Companies This is used to legally separate the business from the owner(s). Both the owner and the business operate independent of one another. The owner is not responsible for liabilities arising except in certain circumstances.