Step 2: Understand Business Structures
Last updated on December 9, 2024
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Most small businesses operate as one of the following:
- Sole proprietorship (individually owned by the self-operator).
- General partnership (owned with one or more partners).
- Corporation (owned by shareholders).
If you are not sure which business structure is the best for your business idea, use the BC Business Registry’s Business Structures Wizard to help you decide and learn more about the different business structures by visiting BC Registries and Online Services.
If you are still unsure about which business structure will be best for your business, it is recommended that you speak with a lawyer or an accountant for support.
There are other business structures, such as societies, franchisees, and cooperatives to consider:
British Columbia is home to a diverse range of not-for-profit organizations – also known as societies. Learn more at: https://www2.gov.bc.ca/gov/content/employment-business/business/not-for-profit-organizations
It is important for potential franchisees to make an informed decision before purchasing a franchise. That’s why we have created an information guide to help decide. Learn more at: www.gov.bc.ca/startingafranchise
Corporations Canada provides detailed information on corporations. This includes the benefits of federal incorporation if you want to expand your business to other provinces. Visit: www.corporationscanada.ic.gc.ca
Incorporation - Incorporation is the legal process of forming a corporation, which is a type of business entity that is separate from its owners (shareholders).
Partnership - A partnership company is operated by two or more parties.
Sole proprietorship - A sole proprietorship is a business with only one owner.