Basic Legal Steps

What are the basic legal steps to starting a business, such as business structure and registration?

After doing all of preliminary research and work to determine the business idea is viable, it’s time to register the business. Determining which business structure to go with can have implications on your business such as: taxation, liability, succession, & financing.

Business Structure

	Sole Proprietorship	General Partnership	Corporation
Limited Liability	No	No	Yes
Name Protection	No	No	Yes*
Advantages	low cost fewer regulations owner in full control easiest to start and maintain	low cost fewer regulations additional sources of investment capital easy to start and maintain	limited liability name protection possible tax advantages easier to raise capital ownership transferable
Disadvantages	unlimited liability no name protection difficult to raise capital	unlimited liability no name protection possible to be liable for partner’s actions	strict regulations most expensive to register and maintain extensive record-keeping necessary possible double taxation

*Incorporated BC Companies are listed in the Corporate Register, maintained by the Registrar of BC of Companies for BC, which could prevent other companies in BC from using the same name or a similar name in the same industry.

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