Hi,
I was wondering if people could comment on the types of business arrangements they made when they created their virtual business.
I am in Canada, and can choose between at least 3 arrangements:
1 - Sole Proprietorship - means the business is an extension of the individual who runs it. You file personal income tax at the normal time period including business income and expenses. Your personal assets are at risk if you are sued.
2 - Partnership - similar to 1 but sharing risks and earnings with another person with whom you have a formal contract. Both individuals share the risk when being sued and you are held responsible for your partners actions.
3 - Incorporated - means you file the business registration either provincially or federally and the business is a legal entity unto itself. Shareholders are not personally liable for the business however directors have some liability.

Please identify your Country and the business arrangements you set up. Also, if you could comment on why you chose that style, I would appreciate it.

Thank you
Elisa

You'll notice there's a poll at the top of this very section devoted to this topic. Please take a look at it here. Hope that helps!

(I'm in an LLP, it works well for us because my husband is my business partner)

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