Business Registration

When starting a business, knowing the differences between Registering a Business or Incorporating can prove very helpful when it comes to your liabilities/responsibilities as a business owner. 

With Registering a business, the liabilities, debts and higher tax brackets can affect your personal assets and while possibly placing you in a higher tax bracket if your business is doing well.  

Types of Business Registrations

Sole-Proprietorship  is an unincorporated business owned and run by one individual with no distinction between the business and you, the owner. You are entitled to all profits and are responsible for all your business’s debts, losses and liabilities. 

Partnership – A partnership is a non-incorporated business that is created between two or more people. In a partnership, your financial resources are combined with those of your business partner(s), and put into the business. You and your partner(s) would then share in the profits of the business according to any legal agreement you have drawn up. 

Rules and regulations of a business can be found in the Business Corporations Act

Description Incorporation Master Business License
Liability Risk Level Limited Personal Liability Personally liable for all business damages
Tax Advantages Possible Lower Tax Advantages Owner(s) Personally Taxed
Name Protection for Business YES – available with incorporation NO
Renewable YES NO – license has to be renewed every 5 years
Ownership Change/Transfer YES NO (minimal exceptions made)
Name Change Flexibility YES NO (minimal exceptions made)
Address Change Flexibility YES YES
Added/Removed Individuals YES NO (minimal exceptions made)
Tax Requirements Corporation taxes filed separately from individual(s) Business taxes filed with personal tax returns
Start Up Costs Minimum $200.00$60.00
Agreements RequiredShareholder Agreement – If more than 1 shareholder Partnership Agreement – if MBL is registered as general partnership

A sole proprietor or a partnership business is the simplest way of operating a business, but before you decide on a business registration, you may want to consider a corporation. 

Please contact ACLS to determine which kind of registration best fits your needs. ACLS offers free consultations and services you can afford. 

If you are in need of other services feel free to contact us

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1(844) 380-ACLS (2257)

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