Choosing the right ownership structure can have a direct impact on your business’s performance. The structure you pick can affect every aspect of your business and personal situation, so it’s important to talk to one of our British Columbia corporate lawyers in the initial phases of establishing your business. This will help your company reach its objectives from the beginning.
A sole proprietorship is the most basic form of business structure, where the business is owned and operated by a single individual. This structure offers simpler control but also means that the owner is personally liable for all debts and obligations of the business.
Corporations are the most common business structure for businesses in British Columbia progressing beyond a sole proprietorship. They offer limited liability to their shareholders, meaning that personal assets are protected from business debts. They also provide opportunities for tax deferment, allowing businesses to roll profits back into the growth of the business.
In a general partnership, two or more individuals share ownership of a business. Each partner contributes to the business and shares in the profits and losses. However, each partner is also personally liable for the debts and obligations of the partnership.
A limited partnership consists of one or more general partners, who manage the business and are personally liable for its debts, and one or more limited partners, who contribute capital and share in the profits but have limited liability.
A joint venture is a business arrangement in which two or more parties in British Columbia agree to pool their resources for a specific project or business activity. Each party retains its separate legal status and is only responsible for its obligations under the joint venture agreement.
Once you have chosen the appropriate structure for your business, it is essential to maintain it properly. This includes keeping accurate and up-to-date records, filing necessary documents, and complying with ongoing legal requirements in British Columbia.
Our corporate lawyers in British Columbia can help you with setting up and maintaining the optimal structure for your business, whether you are a new or an experienced entrepreneur. Our services include:
Selecting and maintaining the right business structure is a critical step in your business journey. Our experienced law firm is here to provide you with the expertise and support needed to make informed decisions and keep your business on the path to success. Contact us today to learn more about how a British Columbia corporate lawyer can help you with your business structuring needs.
