2. Organize Your Business Select the organizational structure for your business Sole Proprietorship PartnershipCorporation Select and register a business name Select and register a partnership name Select a corporate name Draw up a partnership agreement Draw up articles of incorporation File for incorporation with provincial or federal government Comply with provincial licensing requirements Comply with municipal licensing requirements Deal with mandatory deductions Consider employment standards

3. Forms of Business Organization Sole Proprietorship Advantages Simple and inexpensive to start Individual control over operations All profit to the owner Losses deductible from any other income Disadvantages Unlimited liability More difficult to obtain financing Limited resources and opportunity

4. Forms of Business Organization Partnership Advantages Pooling of financial resources and talents Simplicity and ease of organization Increased ability to obtain capital Potential for growth Disadvantages Unlimited liability Divided authority

5. Forms of Business Organization Limited Partnership Advantages Limited liability for limited partners Disadvantages Centralized management Difficulty in changing ownership

6. Forms of Business Organization Corporation Advantages Limited liability Continuity of the business Easier to raise capital Potential employee benefits Tax advantages Disadvantages Cost Legal formalities Inability to flow losses through to the shareholders Need for personal guarantees

7. Forms of Business Organization Co-operative Advantages Owned and Controlled by members One member – one vote Limited liability Any earnings surplus is distributed to the members Disadvantages Long decision making process Possibility of conflict among members Less incentive to invest capital Extensive record keeping required

8. Other Legal Requirements Licences and Permits Municipal Provincial Land Use and Zoning Mandatory Deductions Income Tax Employment Insurance Canada Pension Plan Taxes Provincial Sales Tax GST/HST Employment Standards Insurance

9. Types of Insurance 1.General Liability Insurance 2.Business Premises Insurance 3.Business Use Vehicle Insurance 4.Business Interruption or Loss-of-Income Insurance 5.Disability or Accident and Sickness Insurance 6.Key Person Insurance 7.Credit Insurance 8.Surety and Fidelity Bonds 9.Partnership Insurance 10.Workers’ Compensation