Bizcoach, Small Business Ideas and Resources for Starting a Small Business

Incorporation

1. What is sole proprietorship?

Sole proprietorship is the simplest, easiest and most inexpensive method of doing business. It is basically yourself registering a trade name that you will be using to describe your product or services. The cost is usually under $100.00 and you obtain the necessary registration documents for a sole proprietorship from your local provincial, state, or city government. In Alberta, these services have been under "corporate registries." This form of business is basically yourself, and you are personally liable for any debts you incur or litigation against your sole proprietorship.

2. What is partnership?
A partnership is almost exactly the same as a sole proprietorship except that it is a business run by two or more people. It is also very inexpensive and you use the same methodology to begin your business as described under sole proprietorship.

3. What is incorporation?
Incorporation is a more advanced version of business set up and is used by people who intend to do a substantial amount of sales, and that might incur substantial liabilities. Incorporation is usually done with the assistance of a firm like ours, registration companies, and law firms. Costs to incorporate vary depending on how complicated the structure of the purposed corporation and on who you use to prepare the documentation, but generally range from five hundred dollars to fifteen hundred dollars. Corporations fall under different laws than do sole proprietorships and partnerships and pay taxes at a lower rate than other forms of business setups. You can recognize a corporation by the following symbol: Inc., Ltd., Corp., Corporation, Incorporated, and Limited.

4. Why should I incorporate?
If you intend to do a substantial amount of business, there may be substantial tax savings in incorporating a company, also, incorporation affords you protection from your creditors and potential lawsuits in the event that your corporation fails to survive. There are many other advantages to incorporating that you should discuss with ourselves or with your accountant and/ or lawyer.

5. Can I incorporate myself?
Yes. In most provinces and states, you should be able to pick up incorporation documents and fill them in yourself and pay the appropriate local filing fees to register your corporation. In most cases, you will have to pay for a nuans report in order to verify that the name you want to use for your corporation is available to you.

6. Who can help me to incorporate?
We can, lawyers can, and private government registration agencies can.