BU111 Final: Legal Forms of Business Introduction to the types of business, everything from sole proprietorship to public corporation. includes examples and diagrams/charts
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Most of the advantages and disadvantages of these come from a legalistic perspective. Private corporation tax rates: small business rate applied on the first ,000 made per year: federal rate: 11% provincial rate: 4. 5% total: 15. 5% Do not incorporate business until the point you are sure that it will generate a profit year in and year out. Any losses incurred as a sole proprietorship/partnership may be written off as deductions to tax payable due to personal assets and business assets being the same. Owner has sole claim on all profits. High levels of personal incentive, freedom and satisfaction. An unincorporated business owned and operated by more than one person for his or her private profit. Can be verbal or written (should be in writing) Legal document that outlines all of the rights and responsibilities of the partners: designed to prevent future misunderstanding between partners, should serve as a basis for resolving conflicts or disagreement between partners.
