I've got an idea but...
I’m not sure about the type of business I should launch.
"We have this thing we like doing, we have this complementary skill set … let's see if we can turn this into a business."
John Davis
Danforth Brewery
John came to Canada 10 years ago on a working holiday visa to figure out what he was going to do with his life. Along the way, he and his business partner fell in love with home brewing. They had a vision for a community-focused craft brewing company that supports events and small businesses in Toronto’s East End. Futurpreneur’s business planning process opened their eyes to many questions they needed to answer to ensure they had a solid foundation for their launch.
Business Structure
What form should my business take?
Businesses can be set up in the following ways:
Sole Proprietor, Partnership, Incorporated
Each structure has Pros and Cons:
Sole Proprietor
Pros: One owner, one decision maker; easy to register; all profits go to you; some tax advantages.
Cons: Unlimited liability (you’re responsible for all debts of your business); income drawn from business taxed at personal income rates; can be difficult to raise capital on own; you’re the only one in charge – business survives and thrives with you.
Partnership
Pros: Two owners means you can share responsibilities/tasks; partner can complement your skills; easy to register; start-up costs shared.
Cons: Unlimited liability; challenge with finding the right person to work with – it’s like a marriage; you can be held liable for all decisions made by a partner.
Corporation
Pros: Limited liability; separate legal entity.
Cons: More regulated, requires additional reporting and record keeping; more expensive to set up.
Resource Links:
Put your idea to paper
Our Business Plan Writer will take you through the steps of building a plan that will turn your idea into a business!
Start Here
Get connected with a business development expert.