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Business Registration

Forms of a Business

There are several options when choosing the form of your business: Sole Proprietorship, Partnership or incorporating as a Corporation and a Cooperative model.

Sole Proprietorship:

One person performs all the functions required to operate the business successfully. The proprietor is held personally liable for the debts, obligations or acts of the business.

Partnership:

Two or more people combine their talents and resources to conduct business. Responsibility for all aspects of the business is usually shared among the partners, regardless of the amount of capital contributed by each individual. Each partner is also responsible for debts incurred by the other partner(s) within the limit of the business. Another form of partnership is a Limited Partnership - A legal partnership where some owners assume responsibility up to the amount invested.

Corporation:

Your business can be incorporated provincially and / or federally. You must register in the province that you are operating out off. Before making a decision on the type of registration for your business, it is well advised to consult an accountant and / or a lawyer. A corporation creates a legal entity that is separate and distinct from its shareholders. A number of characteristics distinguish it from a partnership or proprietorship: Limited Liability: Normally no shareholder can be held personally liable for the debts, acts or obligations of the corporation beyond the amount of share capital the shareholder has subscribed; Perpetual Succession: Because the corporation is a separate legal entity, its existence does not depend on the continued membership of any of its shareholders; Shareholders: Shareholder changes are easily made, as ownership of shares in the corporation may be sold without affecting the corporation's existence or its operations.

Federal Incorporation

Provincial Incorporation

Co-operative:

A co-operative, or co-op, is a business or social enterprise that is democratically owned and controlled by its members and based on the principle of "one member, one vote".  Co-ops are formed by a group of three or more people to meet a common need and can operate either on a not-for-profit or for-profit basis.

Co-operative council of NB

Corporate Registry