A035+Legal+Forms+of+Business+Organization+in+Canada

A035+Legal+Forms+of+Business+Organization+in+Canada - Forms...

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Forms of Business Organization in Canada Partnerships, Corporations and Strategic  Alliances
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Forms of Business Organization Sole proprietorship Partnership Corporation Strategic Alliancs
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Sole Proprietorship One person carries on a business No formalities are required Registration of business name desirable No legal requirements or costs Tax losses can be offset against other  income
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Sole Proprietorship Drawbacks Unlimited liability of the proprietor for debts  and liabilities of the business No continuity – what happens when the  owner dies Depends on resources of the proprietor, and  raising money can be difficult
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Partnerships A partnership is formed when Two or more persons Carry on business together With a view to profit Partners Involved directly in the business and make  business decisions themselves Share in the profits
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Partnerships Advantages Tax losses flow through to the partners Law, accounting can only be practiced in  partnerships in Ontario
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Partnerships Disadvantages Unlimited liability of partners for the debts  and liabilities of the partnership business Dealing with new and retiring partners Limited partnerships allow investors some  protection and give advantage of tax loss  flow-throughs
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Partnerships Limited Partnership At least one general partner has unlimited liability  manages the business Several limited partners Passive investors in the business Liability limited to investment Must not manage the business
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Partnerships Limited Partnership Used if business has high losses at start of 
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A035+Legal+Forms+of+Business+Organization+in+Canada - Forms...

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