Free Tool
Business Structure Comparison
A quick side-by-side of the three most common Ontario business structures.
Ontario
Sole Proprietorship
- One owner
- Simplest setup
- Owner personally liable
- Business income on personal tax return
- Register business name if not using legal name
Ontario
General Partnership
- Two or more owners
- Partners personally liable, often jointly
- Income allocated to partners
- Partnership agreement strongly recommended
- Register partnership name if used
Ontario
Ontario Corporation
- Separate legal entity
- Limited liability (with exceptions)
- Separate corporate tax return (T2)
- Directors, shareholders, minute book
- Ongoing annual returns