Corporate and Small Business Lawyer in Hamilton 

You don’t necessarily need a lawyer to start a company. Common reasons to an entrepreneur to get legal advice when starting a business are:

• Navigating the many legal documents that are required
• Making sure that the company is set up correctly and avoid costly problems later
• Making sure the setup is appropriate for your business, rather than using a one-size-fits-all templated approach.
• Saving time by letting a lawyer do what they’re trained to do, so you can focus on your business
• Enabling you to focus on other aspects of the business so you don't have to spend time learning the legal processes. 

The most common structures for business in Ontario are sole proprietorship, a partnership, joint venture and a corporation. The structure that’s right for you depends on a number of factors, including business type, size, and plans to scale among others.

If your business only involves yourself and doesn’t involve others (except perhaps employees), you’re likely suited for a sole proprietorship. This is the simplest form of structuring business in Ontario and has the fewest legal requirements. All profits flow directly to the owner; however, the owner is also fully liable for all debts of the business. The profits are also taxed at higher individual tax rates than other structures.

If you come together with one or more individuals or corporations with a common profit objective, then you’ll be considered a partnership. There are two types of partnerships in Ontario – limited partnership and general partnership. In general partnership, each partner has unlimited liability for the debts and obligations of the partnership. This is the most common type of partnership. A limited partnership is made up of at least one general partner and unlimited limited partners. The general partners, who manage the business, are liable to an unlimited extent for the debts and obligations of the business. This type of partnership must be declared under the Ontario Limited Partnership Act to be recognized by law.

A corporation is a legal entity which is separate from its owners (shareholders). A corporation is considered a legal person and may own property, carry on business, have rights and incur its own liabilities. The owners are not personally responsible for liabilities. The corporation pays tax at lower income rates than the individual tax rates. While this is a very attractive and the most common business structure, there are also costs to incorporating and maintaining incorporation to consider.