February 22nd, 2021

​𝗕𝗨𝗦𝗜𝗡𝗘𝗦𝗦 𝗙𝗢𝗥𝗠𝗔𝗧𝗜𝗢𝗡

Through many aspects, business formation impacts how your business will function, operate and be taxed. Creating a legal structure behind your endeavour is one of the crucial first steps you can make when starting any business. There are plenty of hurdles and protocols that make the process complex. However, being advised as to the most effective and efficient structure will allow you to plan out your next steps.
In essence, with each unique respective business venture, there is a structure that best matches the entrepreneur’s plans for determining the liability of each founder, what taxes to anticipate and how they will be paid.
Each structure allows for the appointment of guidelines regarding important aspects of any business, or simply put, the decision making. For example, a sole proprietor is free to make decisions on their own, as the business is entirely their’s. However, if a member of a partnership wanted to make a crucial decision they would legally have to seek approval from other partners before moving forward. The exception to this would be a sole proprietorship. If there is more than one person working on the business, you will want a business agreement which sets out the addition of parties, the removal of parties and how the business will be run on a day-to-day basis.