Guide To Doing Business In Canada: Business Structures

Business structures

As is the case in most common law jurisdictions, a person or entity wishing to operate a business in Canada can choose from several different business structures. The appropriate structure is determined on a case-by-case basis depending on the nature and location of the business, liability and general issues of exposure, the entity's financing requirements, and tax considerations.

There are three basic structures available: sole proprietorship, partnership and corporation. Foreign businesses may also conduct business within Canada through branch operations or a joint venture.

1. Sole proprietorship

A sole proprietorship is employed when the business is owned and operated by the individual responsible for the business and its liabilities.