Sole Proprietorship:

A sole proprietorship is an unincorporated business which is owned by one individual only. It is the most simple type of businesses, it also offers the least amount of financial and legal protection for the owner. Sole proprietorships do not create a separate legal identity for the business. Therefore, the owner is fully liable for any and all liabilities incurred by the business. An entrepreneur may choose this option if they want to retain full control of the business. Additionally, it is a relatively easy and inexpensive process to establish a sole proprietorship. There are also tax benefits, as income is considered the owner’s personal income and therefore only taxed once.

Trade Name:

A company typically uses a trade name to conduct business using a simpler name rather than using their formal and often lengthier name. Trade names are also used when a preferred name cannot be registered, often because it may already be registered or is too similar to a name that is already registered. If you want to use a name other than your legal business name, you will need to register it as a trade name/DBA (Doing Business As).

Some examples of businesses that need to register a trade name/ MBL/DBA include: You are a sole proprietor but are adding something to your legal name that modifies it (for example, Jane Doe Consulting). You plan to use a name other than your legal name for marketing purposes (for example, your business’ legal name is Smith Bakeries Inc., but you are marketing as Bob Smith’s Bakery).

Number corporation register trade name for doing business; often operate as something other than their legal name, which is unrecognizable or difficult to remember by public.

• Can own by Corporation, Individual
• Easiest form to start business
• No Business name protection
• Tax facility based on owners

General Partnership:

A partnership is an association or relationship between two or more individuals, corporations, trusts, or partnerships that join together to carry on a trade or business. Each partner contributes money, labour, property, or skills to the partnership. In return, each partner is entitled to a share of the profits or losses of the business. The business profits (or losses) are usually divided among the partners based on the partnership agreement.

In a general partnership, each partner is fully personally liable for the debts, contractual obligations, and torts resulting from the partnership’s operation.

• Unlimited personal liability
• Easy tax structure
• No Name protection
• Multiple owners
• Ownership easily transferable

CRA Business Number:

A unique, 9-digit number and the standard identifier for businesses which is unique to a business or legal entity. Every business must need these unique identifiers in order to open other CRA accounts such as a GST/HST account and/or Payroll account.

PST/GST Account:

You have to register for a GST/PST account if You make taxable sales, leases, or other supplies in Canada.

WorkSafeBC Account:

As a small business owner, you need affordable workplace insurance you can rely on to protect you and your workers. The WorkSafeBC works for you providing guaranteed no-fault workplace insurance that protects you from costly court settlements and provides services and support when you need it. Most businesses that have employees (including family members and sub-contractors) must register a WorkSafeBC account.