Ontario business registration is an important first step towards starting a business, but this depends upon your business structure. There are different rules for sole proprietorship and partnership, and here are a few things you need to know.
Sole Proprietorship or Partnership
A sole proprietorship is a business owned by one person. It is the easiest and least expensive type of business to start. A partnership is a business owned by two or more people. It is also easy and inexpensive, but there are differences between a general and limited partnership to consider. In the former, all partners share in the profits and losses and are personally and jointly responsible for all liabilities. In a limited partnership, there are both general and limited partners. Limited partners are not involved in the daily operation and are only personally responsible for losses up to the amount of capital they contributed. General partners are responsible to operate the limited partnership and are personally and jointly responsible for all liabilities.
You should register your business name because you will need proof of business name registration while opening a business bank account. It also ensures you are not using someone else’s business name, and helps you establish recognition of your chosen name.
After you choose a proper legal structure, you must create a business name that is distinctive. Names for sole proprietorships and partnerships may not include legal identifiers like ‘Limited, Ltd., Incorporated, Inc., Corporation, or Corp.’ that are reserved exclusively for incorporated businesses. Find out about availability by performing a name search or NUANS® /CIDREQMD Search.
Understanding The Paperwork
Find out about permits, licenses, and taxes that may be necessary for your business. You should also complete a Partnership Agreement that is optional for General Partnerships and mandatory for limited partnerships. When you fulfill all your legal obligations related to Ontario business registration, you are finally ready to focus on operating and growing your new business.
For Business Registration In Ontario
If you have questions about business registration in Ontario, whether it is a sole proprietorship or partnership, Leeds Grenville Small Business Enterprise Centre has all the answers you need. We are the leading resource center for new and existing small businesses. For more information or advice, get in touch with our team of experts today.