Ontario Business Names & Security Registrations
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Registration Services
Types of Business Names in Ontario
Sole Proprietorship
A sole proprietorship is an unincorporated business name that is owned by a single individual. It is one of the simplest and lowest costs ways of registering a business. Because it is considered an operating name of the individual, all the profits and expenses are the reported on the individuals personal tax return. This can also increase the potential liability of the individual as they are liable for all debts and losses.
General Partnership
A general partnership is similar to a sole proprietorship but is owned by two or more individuals who jointly share responsibilities, assets, profits, losses and liabilities of the business. Partners can pool their skills, resources and expertise to achieve the objectives of the business. It is also a low-cost method of registering a business.
Business or Trade Name by a Corporation
If a corporation wishes to carry on business under a name other than its legal corporate name, a business name can be registered under the Business Names Act. This is commonly referred to as a ‘Trading name’, ‘Style name’, or ‘operating name’. The legal owner is the corporation which is responsible for assets and liabilities of the business.
Limited Partnership
A limited partnership consists of one or more ‘general partners’ and one or more ‘limited partners’ and is governed by a document agreed to between the parties, such as a limited partnership agreement. The general partner is responsible for managing the business and has unlimited liability for the partnership’s debts, whereas the limited partner typically has limited liability and is not involved in managing the business.
*Disclaimer: The information provided in this section is intended solely for informational purposes and should not be interpreted as legal advice. Centro Legal Works does not operate as a law firm and does not offer legal counsel. For guidance or further details regarding business formations, it is advisable to seek the assistance of a qualified lawywer.
