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ARTICLE · 21 MARCH 2025

Corporate Tax 2025

BCF Business Law
BCF Business Law
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BCF Business Law

BCF Business Law

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There are several options available when doing business in Canada. The choice of structure is generally dictated by a number of factors, based mainly on tax and liability considerations. The most used structures are:

CanadaTax
Marc-André Godard
Marc-André Godard
Pierre T. Allard
Pierre T. Allard
Isabelle Gagnon
Isabelle Gagnon
Mehrez Houacine
Mehrez Houacine
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1. Types of Business Entities, Their Residence and Basic Tax Treatment

1.1 Corporate Structures and Tax Treatment

There are several options available when doing business in Canada. The choice of structure is generally dictated by a number of factors, based mainly on tax and liability considerations. The most used structures are:

  • corporations;
  • unlimited liability companies (ULCs);
  • partnerships;
  • joint ventures; and
  • sole proprietorships.

Corporations

Businesses are generally carried on by corporations, which are legal entities with a patrimony distinct from their shareholders'. Such entity may be incorporated under the Canada Business Corporations Act or under an equivalent law of a province or territory. Corporations' popularity stems from two main factors:

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