Partnership vs. Corporation in Canada
There's two us of looking to create a company. We're two software developers and we're thinking of starting out doing some run-of-the-mill freelancing work, and hope to hit upon an idea or two we could try to turn into something bigger.
We're trying to get our feet wet with some consulting work on the side while we stay at our day jobs. Right now we want to get the legal stuff in place so we can open a bank account and be ready to start charging customers.
We're looking at either a partnership or a corporation. The partnership seems a little simpler to get off the ground for a couple of first-time business owners. I'm thinking that if we want to, we could always change it to a corporation down the road when we get big and our cash flow means we don't mind getting a lawyer to help us do everything properly.
Anyone have experience with these different structures and have any hindsight advice?
Hi Alex.
I'm a consultant and I've incorporated in 2012.
Didn't use a lawyer, just registered a numbered company using online services. I'd recommend you use a named company, and for that you also need to do a name search.
All fees in, this should run you sub 500$. You really don't need a lawyer, just indicate 50% ownership for each partner and you're good. My recommendation is to specify annual filing option for HST. This way you don't have to visit an accountant every quarter.