Unincorporated, owned by one individual. No distinction between personal income and business income.
Easy to start
Termination with death
Sole Proprietorship Name Registration if other than your personal name: http://www.bdc-canada.com/BDC/services/NUANS_searches.htm . File income under personal taxes. Need to collect GST/HST if revenue is over $30,000
Two or more co-owners – can be either general or limited. Partnership agreement is very important.
Easy to start
Responsible for partner’s actions
Termination with death of a partner
A distinct legal entity incorporated either federally or provincially. Can be either public or private (50 or less shareholders).
Access to capital
Unlimited life/ease of ownership transfer
More cost and complexity
Corporation How many contractual relationships is your business in? A good explanation on Idea 2 Delivery
Public benefit or member benefit
Must incorporate to be legally recognized as a nonprofit
Registered under provincial legislation
Board of Directors is a legal requirement
Not necessarily a charity – cannot issue receipts
All resources are directed to furthering their objects (purposes)
Limited to what is written in its objects
The Business Plan
How does it all come together?
Team & Ownership Structure
SWOT Analysis (include as an appendix)
Marketing Strategy Include Research & Costs
Requirements for next 3-5 years
Human Resources – training, hiring, needs, etc.
One-time & operating expenses
Cash flow and income statements for first year
Break even point
More guidelines at RBC Example at BDC
Personal, Friends, Family, Bootstrapping
Bank Financing – Requires collateral, predictability