Owned By

• Single individual

Legal Status

• Not a separate legal entity
• Owner has unlimited liability
• Owner personally liable for debts

Formalities

• Quick and easy to set up
• Easy to administer and manage
• Registration cost is minimal
• Less administrative duties to adhere to
• Can renew business registration for one year or three years

Set Up Fee

• $115 ($15 name application fee and  $100 registration fee) for 1-year registration
• $175 ($15 name application fee and $160 registration fee) for 3-year registration

Taxes

• Profits taxed at owner’s personal income tax rates

Business Continuity

• Exists as long as the owner is alive and desires to continue the business

Owned By

• At least 2 partners, no maximum limit

Legal Status

• A separate legal entity from its partners
• Partners have limited liability
• Partners personally liable for debts and losses resulting from their own wrongful actions
• Partners not personally liable for debts and losses of LLP incurred by other partners

Formalities

• Quick and easy to set up
• Fewer formalities and procedures to comply with than a company
• Registration cost is relatively minimal and fewer regulatory duties to adhere to than a company
• No statutory requirement for general meetings, directors, company secretary, share allotments, etc.
• Only an annual declaration of solvency/insolvency must be lodged by one of the managers stating whether the LLP is able or not able to pay its debts during the normal course of business

Set Up Fee

• $115 ($15 name application fee and  $100 registration fee)

Taxes

• Profits taxed at partners’ personal income tax rates (if individual)/ corporate tax rate (if corporation)

Business Continuity

• The LLP has perpetual succession until wound up or struck off

Owned By

• Exempt Private Company –20 members or less and no corporation holds beneficial interest in the company’s shares
• Private Company – 50 members or less
• Public Company – can have more than 50 members

Legal Status

• A separate legal entity from its members and directors
• Members have limited liability
• Members not personally liable for debts and losses of company

Formalities

• More costly to set up and maintain
• More formalities and procedures to comply with
• Must appoint a company secretary within 6 months of incorporation
• Must appoint an auditor within 3 months after incorporation unless the company is exempt from audit requirements
• Annual Returns must be filed
• Statutory requirements for general meetings, directors, company secretary, share allotments, etc. must be complied with

Set Up Fee

• $315 ($15 name application fee and $300 incorporation fee)

Taxes

• Profits taxed at corporate tax rates

Business Continuity

• A company has perpetual succession until wound up or struck off