Corporate and
Commercial Law

There are 3 principle forms of business entities: Corporations, Sole Proprietorships and Partnerships. Each form has distinct advantages and disadvantages.

Typically, businesses start out as sole proprietorships or partnerships in order to deduct start-up losses against other income of the owners. Once the business becomes profitable, the business is then incorporated in order to not only provide the benefits of limited liability but the very low tax rate of a Canadian controlled private corporation’s income, and other tax advantages of the corporation. You should seek the advice of an accountant, and lawyer when starting a business or changing from one form to another.