Forms of Organization Band A band is a unique legal structure in Canada that derives power and authority from inherent aboriginal rights, through the Indian Act, and through delegated authority by agreement operate as self-governing corporations. Law recognizes most aboriginal communities as which consist of members and reserve lands. A chief and council govern a band. Beyond this legal recognition, Bands will often create corporations or societies to conduct certain business and deals with land. Sole Proprietorship Unincorporated: No compliance mechanism to force a sole proprietorship to incorporate and subject themselves to legislation Sole Proprietorships that engage in manufacturing, trading or mining must register their business name (In Ontario?) Ontario forces sole proprietors to register names, prevents confusion in marketplace The most simple form of business organization 1 Owner Normally executed by small scale service providers that don’t need to worry about pensions, shares, leases, overhead, payroll etc. Pros Start-up cost is limited to what you inject into the business No need to dissolve business formally, no formal legislative compliance requirements Technically no limit to how many employees you have, informal structure No duty or imposition of any form of Corporate Social Responsibility Cons No separation between the business owner and his business. No separate legal personality. This exposes the owner to full liability and affords no protection through the corporate entity. May be wise to incorporate a one man business to get this protection Partnership A partnership is defined as a relationship (S.2 BC Partnership Act) Between two or more persons Carrying on business In common (consensually) With a view to profit Note: Profit need not be attained, it need only be sought Note: Person includes Corporation under S.29 of the ergo, partnerships can exist Interpretations Act, between two corporations. It may be economically efficient for these companies to do so, such as for sharing debts and liabilities or profits. Key Legislation
Forms of Organization Band A band is a unique legal structure in Canada that derives power and authority from inherent aboriginal rights, through the Indian Act, and through delegated authority by agreement operate as self-governing corporations. Law recognizes most aboriginal communities as which consist of members and reserve lands. A chief and council govern a band. Beyond this legal recognition, Bands will often create corporations or societies to conduct certain business and deals with land. Sole Proprietorship Unincorporated: No compliance mechanism to force a sole proprietorship to incorporate and subject themselves to legislation Sole Proprietorships that engage in manufacturing, trading or mining must register their business name (In Ontario?) Ontario forces sole proprietors to register names, prevents confusion in marketplace The most simple form of business organization 1 Owner Normally executed by small scale service providers that don’t need to worry about pensions, shares, leases, overhead, payroll etc. Pros Start-up cost is limited to what you inject into the business No need to dissolve business formally, no formal legislative compliance requirements Technically no limit to how many employees you have, informal structure No duty or imposition of any form of Corporate Social Responsibility Cons No separation between the business owner and his business. No separate legal personality. This exposes the owner to full liability and affords no protection through the corporate entity. May be wise to incorporate a one man business to get this protection Partnership A partnership is defined as a relationship (S.2 BC Partnership Act) Between two or more persons Carrying on business In common (consensually) With a view to profit Note: Profit need not be attained, it need only be sought Note: Person includes Corporation under S.29 of the Interpretations Act, ergo, partnerships can exist between two corporations. It may be economically efficient for these companies to do so, such as for sharing debts and liabilities or profits. Key Legislation
Businsess-Associations-Master-Key1.docx