Organize Your Business Select the organizational structure for your business Sole Proprietorship...
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Transcript of Organize Your Business Select the organizational structure for your business Sole Proprietorship...
![Page 1: Organize Your Business Select the organizational structure for your business Sole Proprietorship PartnershipCorporation Select and register a business.](https://reader035.fdocuments.in/reader035/viewer/2022072011/56649e015503460f94aeb877/html5/thumbnails/1.jpg)
EP2150 – EntrepreneurshipLegal Issues for the Small Business
![Page 2: Organize Your Business Select the organizational structure for your business Sole Proprietorship PartnershipCorporation Select and register a business.](https://reader035.fdocuments.in/reader035/viewer/2022072011/56649e015503460f94aeb877/html5/thumbnails/2.jpg)
Organize Your BusinessSelect the organizational structure for your business
SoleProprietorship
Partnership Corporation
Select andregister a business name
Select and register apartnership name
Select a corporatename
Draw up apartnershipagreement
Draw uparticles ofincorporation
File for incorporationwith provincial orfederal government
Comply with provincial licensingrequirements
Comply withmunicipal licensingrequirements
Deal withmandatorydeductions
Consideremployment standards
![Page 3: Organize Your Business Select the organizational structure for your business Sole Proprietorship PartnershipCorporation Select and register a business.](https://reader035.fdocuments.in/reader035/viewer/2022072011/56649e015503460f94aeb877/html5/thumbnails/3.jpg)
Forms of Business OrganizationSole Proprietorship
AdvantagesSimple and
inexpensive to startIndividual control
over operationsAll profit to the
ownerLosses deductible
from any other income
DisadvantagesUnlimited liabilityMore difficult to
obtain financingLimited resources
and opportunity
![Page 4: Organize Your Business Select the organizational structure for your business Sole Proprietorship PartnershipCorporation Select and register a business.](https://reader035.fdocuments.in/reader035/viewer/2022072011/56649e015503460f94aeb877/html5/thumbnails/4.jpg)
Forms of Business OrganizationPartnership
AdvantagesPooling of financial
resources and talentsSimplicity and ease
of organizationIncreased ability to
obtain capitalPotential for growth
DisadvantagesUnlimited liabilityDivided authority
![Page 5: Organize Your Business Select the organizational structure for your business Sole Proprietorship PartnershipCorporation Select and register a business.](https://reader035.fdocuments.in/reader035/viewer/2022072011/56649e015503460f94aeb877/html5/thumbnails/5.jpg)
Forms of Business OrganizationLimited Partnership
AdvantagesLimited liability for
limited partners
DisadvantagesCentralized
managementDifficulty in changing
ownership
![Page 6: Organize Your Business Select the organizational structure for your business Sole Proprietorship PartnershipCorporation Select and register a business.](https://reader035.fdocuments.in/reader035/viewer/2022072011/56649e015503460f94aeb877/html5/thumbnails/6.jpg)
Forms of Business OrganizationCorporation
AdvantagesLimited liabilityContinuity of the
businessEasier to raise
capitalPotential employee
benefitsTax advantages
DisadvantagesCostLegal formalitiesInability to flow
losses through to the shareholders
Need for personal guarantees
![Page 7: Organize Your Business Select the organizational structure for your business Sole Proprietorship PartnershipCorporation Select and register a business.](https://reader035.fdocuments.in/reader035/viewer/2022072011/56649e015503460f94aeb877/html5/thumbnails/7.jpg)
Forms of Business OrganizationCo-operative
AdvantagesOwned and
Controlled by members
One member – one vote
Limited liabilityAny earnings surplus
is distributed to the members
DisadvantagesLong decision
making processPossibility of conflict
among membersLess incentive to
invest capitalExtensive record
keeping required
![Page 8: Organize Your Business Select the organizational structure for your business Sole Proprietorship PartnershipCorporation Select and register a business.](https://reader035.fdocuments.in/reader035/viewer/2022072011/56649e015503460f94aeb877/html5/thumbnails/8.jpg)
Other Legal Requirements
Licences and PermitsMunicipalProvincialLand Use and Zoning
Mandatory Deductions Income TaxEmployment InsuranceCanada Pension Plan
TaxesProvincial Sales TaxGST/HST
Employment Standards
Insurance
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Types of Insurance
1. General Liability Insurance2. Business Premises Insurance3. Business Use Vehicle Insurance4. Business Interruption or Loss-of-Income
Insurance
5. Disability or Accident and Sickness Insurance 6. Key Person Insurance7. Credit Insurance8. Surety and Fidelity Bonds9. Partnership Insurance10. Workers’ Compensation