There are several advantages to each of the business types; let’s look at some of them. 

Sole Proprietorship

  • You have complete control and can make all decisions without involving anybody else.
  • There aren’t many fees associated with getting it up and running.
  • You get some tax benefits, such as the opportunity to deduct losses and costs from your taxable income.
  • You are the only beneficiary of all earnings.

Partnership

  • Setting up a partnership agreement is quite affordable, and the business is divided equally among you and your partners.
  • Each partner is responsible for the partnership’s debts; thus, losses are shared, and gains are split among the partners.
  • You and your partners can report your share of the loss on your tax returns if the partnership’s income is negative (i.e., the firm loses money).
  • In the business, you have assistance and, ideally, complementing skill sets.

Corporation

  • Because you keep your personal and business assets separate, it’s less probable that you’ll be personally responsible if the company goes bankrupt.
  • A corporation will continue to exist even if the management changes, making it easier to pass on or sell the company.
  • Shares might be sold to obtain funds for development or growth projects.
  • Any shareholder can sell their shares to a third party outside the firm if there is no shareholder agreement in existence. This means that such a transaction will only be subject to the approval procedures outlined in the articles of incorporation. According to Canadian case law, these may not be able to prevent a share sale to an outside entity.

Cooperative 

  • The same as a corporation, it has limited responsibility.
  • Profits are shared among the shareholders.
  • A democratically elected government runs it.  

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