Get a quote

Comparative table of the various legal forms

Advantages

Corporation

  • Shareholders' personal liability limited to their investment
  • Lower corporate tax rate than individuals

Sole Proprietorship

  • Low cost
  • Few formalities required to set it up
  • No distinct assets between the individual and the company
  • Ideal for self-employed workers (up to a certain income)

Non-profit Organization

  • Sometimes easier to access government grants in certain areas
  • Issuing charitable receipts (if registered with CRA as a charitable organization)
  • Limited personal liability of founders

Partnership

  • Less expensive to set up
  • Few formalities required to set it up
  • Simple to operate: the general partnership is bound by an agreement as well as the law

Disadvantages

Corporation

  • More expensive to set up and to maintain
  • Several formalities to set up

Sole Proprietorship

  • Unlimited personal liability for debt
  • Tax income rate identical to individual tax rate
  • The death of the individual terminates the sole proprietorship

Non-profit Organization

  • Restriction on the number of founders depending on the type of constitution
  • Set-up and administrative procedures are costly

Partnership

  • Unlimited and shared personal liability of partners
  • Tax rate identical to the individual tax rate

Estimated cost

0$CAD

(excluding taxes)
DashboardSettingsContactNewsletter
Fr