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Starting a Business in Brunswick: Choose a business structure

Now that you have decided to start your own Business in Brunswick, you will have to determine what business structure or form of organization suits your needs. The structure of your business will depend on whether you want to run your business yourself or with a partner or associates.

There are four main types of business structures in Brunswick: Brunswick sole proprietorships, Brunswick partnerships, Brunswick corporations, and Brunswick cooperatives.

Brunswick Sole proprietorships

With this type of business organization, you would be fully responsible for all debts and obligations related to your business and all profits would be yours alone to keep. As a sole owner of the business, a creditor can make a claim against your personal or business assets to pay off any debt.

Advantages of Sole Proprietorships in Brunswick:

Easy and inexpensive to form a sole proprietorship (you will only need to register your business name provincially)

Relatively low cost to start your business

The lowest amount of regulatory burden

Direct control of decision making

Minimal working capital required to start-up

Tax advantages if your business is not doing well, for example, deducting your losses from your personal income, lower tax bracket when profits are low, and so on

All profits will go to you directly

Disadvantages:

Unlimited liability (if you have business debts, personal assets would be used to pay off the debt)

Income would be taxable at your personal rate and, if your business is profitable, this may put you in a higher tax bracket

Lack of continuity for your business, if you need to be absent

Difficulty raising capital on your own

Brunswick Sole proprietorship Registration service

Brunswick business name registration for sole proprietorships. If you are using a business name that differs from your full name, you need to register that business name. A sole proprietorship is an unincorporated business that is owned by one individual. It is the simplest kind of business structure. You may choose to register a business name or operate under your own name or both.

In Brunswick, sole proprietorship business names are registered by filing a Declaration of Trade Name with the Brunswick Registries office. Ecompanies Canada offers fast & easy Brunswick online sole proprietorship business name registration service. At Ecompanies Canada we help you step-by-step and take care of the entire business registration process from start to finish. Registering a new business name with us is fast, easy and takes just minutes. Register today your new Brunswick sole proprietorship business name. Fast, easy, online for only $39.

Brunswick Partnerships

A partnership is a good business structure if you want to carry on a business with a partner and you do not wish to incorporate your business. With a partnership, you would combine your financial resources with your partner into the business. You can establish the terms of your business with your partner and protect yourself in case of a disagreement or dissolution by drawing up a specific business agreement. As a partner, you would share in the profits of your business according to the terms of your agreement.

You may also be interested in a limited liability partnership in the business. This means that you would not take part in the control or management of the business, but would be liable for debts to a specified extent only.

When establishing a partnership, you should have a partnership agreement drawn up with the assistance of a lawyer, to ensure that:

You are protecting your interests

That you have clearly established the terms of the partnership with regards to issues like profit sharing, dissolving the partnership, and more

That you meet the legal requirements for a limited partnership (if applicable)

Advantages of Partnerships in Brunswick:

Easy to start-up a partnership

Start-up costs would be shared equally with you and your partner

Equal share in the management, profits, and assets

Tax advantage, if income from the partnership is low or loses money (you and your partner include your share of the partnership in your individual tax return)

Disadvantages:

Similar to a sole proprietorship, as there is no legal difference between you and your business

Unlimited liability (if you have business debts, personal assets would be used to pay off the debt)

Hard to find a suitable partner

Possible development of conflict between you and your partner

You are held financially responsible for business decisions made by your partner (for example, contracts that are broken)

Brunswick partnership Registration Service

Ecompanies Canada offers fast & easy Brunswick online general partnership registration service in Brunswick and anywhere in Canada. At e-Companies.ca we help you step-by-step and take care of the entire business registration process from start to finish. Registering a new general partnership with us is fast, easy and takes just minutes. Register today your new partnership in Brunswick, fast, easy, online.

Brunswick Corporations

Another type of business structure is incorporation. Incorporation can be done at the federal or provincial level. When you incorporate your business, it is considered to be a legal entity that is separate from the owners and shareholders. As a shareholder of a corporation, you will not be personally liable for the debts, obligations or acts of the corporation. When making such decisions, it is always wise to seek legal advice before incorporating.

Advantages of Corporations in Brunswick:

Limited liability

Ownership is transferable

Continuous existence

Separate legal entity

Easier to raise capital

Possible tax advantage as taxes may be lower for an incorporated business

Disadvantages:

A corporation is closely regulated

More expensive to incorporate than a partnership or sole proprietorship

Extensive corporate records required, including shareholder and director meetings, and documentation filed annually with the government

Possible conflict between shareholders and directors

Possible problem with the residency of directors

Brunswick Incorporation Service

Ecompanies offers fast & easy Brunswick online incorporation and business registration services. At Ecompanies we help you step-by-step and take care of the entire business registration process from start to finish. Incorporating a new business in Brunswick with us is fast, easy and takes just minutes.

Register today your new Brunswick corporation fast, easy, online for only $99.99

Brunswick Cooperatives

The last business structure you could create is a cooperative. With a cooperative, you would have a business that would be owned by an association of members. This is the least common form of business but can be appropriate in situations where a group of persons or businesses decide to pool their resources to provide access to common needs, such as the delivery of products or services, the sale of products or services, employment, and more.

Advantages of Cooperatives in Brunswick:

Owned and controlled by members

Democratic control (one member, one vote)

Limited liability

Profit distribution

Disadvantages:

Possible conflict between members

Longer decision-making process

Participation of members needed for success

Extensive record keeping

Less incentive to invest additional capital

The post Starting a Business in Brunswick: Choose a business structure appeared first on Ecompanies Canada.

from Ecompanies Canada http://bit.ly/2KBQLGJ



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