Deciding on a Business Structure
5 types of business structures
Choose to operate 1 of 6 types of business structures. The type of legal form you choose for your business determines liability and tax implications and succession planning.
- Sole proprietorship. To operate the business on your own, either under a business name or your own name
- Partnership. To operate the business with one or more partners
- Corporation. To operate the business as a separate legal entity, separate from yourself and your personal assets.
- Society. To operate a not-for-profit organization, in which any funds or profits will be used only for the society's purposes .
- Co-operative. To operate a business that is owned and democratically controlled by the people who use and benefit from your services.
- Social Enterprise. To operate a business that benefits the community and has limited investor returns within the context of a traditional for-profit company.
Choosing a business structureInvestigate into the business types to find the structure that suits your needs best.
- Small Business BC (Website. New window) gives you pros and cons of each business type.
- BC Registry Services (Website. New window) provides information on the types of business structures.
- One Stop Business Registry (Website. New window) is a one-stop shop to get information on the types of business structure, get a name approval and register your business.
- Canada Business (Website. New window) provides information on which type of business structures is suitable for your business.
If you’re uncertain about which structure is right for your business, a lawyer or an accountant can help you choose.