| Incorporated Business | Unincorprated Business | |
|---|---|---|
| Business Type | Standard Corporation, Professional Corporation, PREC etc. | Sole Proprietorship, Partnership, Trade Name, MBL |
| Operate Under a Business Name | ||
| Operate Under Number Name | ||
| Limited Personal Liability | ||
| Lower Tax rate | ||
| Business Name Protection | ||
| Multiple Owners | ||
| Simple Tax Structure | ||
| Can Raise money and Grant easily | ||
| Easy access to capital | ||
| Separate Legal Entity | ||
| Continuous Existence | ||
| Very Easy to Start Business |
What is Corporation ?
Corporation is a single entity which may be composed of individuals or a company, but is separate from its owners. Among the most important features of a corporation is limited liability, which means that its owners can participate in the share of profits, but not the corporation’s liabilities. Along with limited liability, corporations possess the ability to own assets, enter contracts, sue or be sued, and borrow money. The creation of a corporation occurs following the proper filing of Articles of Incorporation (also called a Charter or Certificate of Incorporation) with the relevant government department or authority. Every corporation is composed of shareholders, directors and officers. The directors are responsible for supervising and managing the corporation’s affairs.
Professional Corporation: The Professional Corporation only can be applied by certified professional like: Lawyer, Doctor, Accountant CPA, engineer, real estate agent and many other professional.
A sole proprietorship is an unincorporated business that is owned by one individual only. While it is the most simple of the types 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 company. 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.
A Corporation 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). Number corporations register trade names for doing business; often operate as something other than their legal name, which is unrecognizable or difficult to remember by the public.
There are countless organizations and charities that work to help individuals or communities in need. These types of organizations are typically considered not-for-profit. A not-for-profit organization does not earn any profits for its owners. Instead, the organization donates the money it receives to help fund the organization’s objectives and goals. A not-for-profit might also use received donations to stay up and running.