Business Structures Lawyer Service
Our business lawyers offer services in assisting clients with their business structures. There are various types of business vehicles one can use to carry on business in Ontario, Canada, including:
- Sole Proprietorship.
- General Partnership.
- Limited Partnership.
- Limited Liability Partnership
- Professional Corporation.
- Joint Venture.
- Co-Operative (For Profit and Not-For-Profit).
A Sole-Proprietorship is not a separate legal entity from its owner. As such, there is unlimited liability - creditors can collect from you (you are personally liable).
General Partnerships are similar to sole proprietorships because there is no separation between the general partner and the partnership. In a nutshell, creditors can attempt to recover from each general partner's personal assets for the partnership's liabilities.
Limited Partnerships are similar to general partnerships, except there must be at least one limited partner, in addition to a general partner. A limited partner is a passive investor, that does not, and should not, play a role in the operation of the partnership. The general partner is involved in the day-to-day operations of the partnership. A limited partner's liability is limited to the amount they invested in the business.
Limited Liability Partnerships are business vehicles usually used by professionals. Each partner is liable for its own negligent acts or omissions, but all the partners are collectively liable for claims against the partnership.
In Ontario, Partnerships are not separate legal entities.
A Corporation is a separate legal entity from its owner(s). It provides its owners limited liability, whereby an owner's liability is limited to the amount it invested in the corporation. This is the most common business vehicle used by entrepreneurs.
A Professional Corporation allows certain professionals to set up a business structure primarily for tax purposes. Liability is treated differently with a Professional Corporation than with a Corporation. Professional Corporations do not limited your professional liability. Liability is only limited for business dealings where no personal guarantee has been made.
Joint Ventures are a business relationship established between two or more entities for a particular business project. A Joint Venture differs from a Partnership because a JV involves a single business project, whereas a Partnership tends to involve an ongoing business relationship. A Joint Venture is typically established through a contractual agreement referred to as a Joint Venture Agreement, or through the formation of a corporation.
Contact our business lawyers today by telephone to discuss your business structure. Our business lawyers offer services across the Greater Toronto Area, including Mississauga, Oakville, Brampton, Burlington, Milton, Guelph, Waterloo, Kitchener, Hamilton, Vaughan, Newmarket and North York.