CA 
England
Estonia
Turkiye
Corporate Business / Dissolution
From Sole Proprietor to Public Corporation: Your Path, Perfected.
-
1 - Sole Proprietorships and Partnerships
- Description:
- Advantages:
- Disadvantages:
- Description:
- Advantages:
- Disadvantages:
- Ownership: Fully controlled by Canadian residents.
- Tax Benefits:
- Key Features:
- Ownership: Controlled by foreign or immigrant individuals.
- Taxation:
- Key Features:
- Ownership: Shares listed on a Canadian stock exchange (public investment).
- Taxation:
- Key Features:
-
3 - Co-operatives (For-Profit & Non-Profit)
- Description:
- Advantages:
- Disadvantages:
- Wind-Up Planning: Develop compliant dissolution strategies under CBCA or provincial laws, prioritizing creditor settlements and asset distribution.
- Tax Clearance: Secure CRA Certificates of Compliance to confirm all tax obligations (GST/HST, payroll) are settled.
- Final Filings: Submit Articles of Dissolution and terminate business registrations with federal/provincial authorities.
- Creditor Negotiations: Mediate disputes and negotiate repayment plans to avoid court-ordered liquidation.
- Regulatory Compliance: Address involuntary dissolutions triggered by non-compliance (e.g., missed annual filings, Ontario ESA violations).
- Asset Liquidation: Oversight of asset sales, intellectual property transfers, or legacy contract terminations.
- Record Retention: Maintain legally required corporate records (7+ years) for potential audits or liability claims.
Simplest and most common way to start a business.
Owner(s) bear full responsibility for success and liabilities.
Easy and quick registration.
All profits flow directly to owner(s).
Full control over business deductions.
Must renew registration every 5 years.
Unlimited personal liability for debts/obligations.
Business name is not protected.
Business income taxed at personal tax rates.
Ownership is not transferable.
2 - Corporations
A legal entity separate from its owners.
Can be incorporated federally or provincially.
Limited personal liability for owners.
Business name is legally protected.
Ownership is transferable.
Lower tax rates on business income (vs. personal rates).
Annual filings and corporate record-keeping required.
Higher setup costs.
1 - Canadian Controlled Private Corporation (CCPC)
First $500,000 taxable income taxed at a lower rate (Small Business Deduction, SBD).
Eligible for Carbon Rebate.
Private (not publicly traded).
Not controlled by non-residents or public corporations.
2 - Other Private Corporation
Taxed at general corporate rates (no SBD).
Not eligible for Carbon Rebate.
Private (not publicly traded).
Shares owned by non-residents.
3 - Public Corporation
Taxed at general corporate rates.
Not eligible for Carbon Rebate.
Generates income through public stock offerings.
Owned and democratically controlled by members (one member = one vote).
Limited liability for members.
Profits distributed among members.
Democratic decision-making.
Potential conflicts between members.
Slower decision-making due to consensus requirements.
Success depends on active member participation.
