Hey I'm just wondering what type of business you run... sole-prorprietorship, partnership, LLC etc. Also, why do you find the way you did it advantageous compared to your other options?
I am especially interested in hearing what other Canadians have done, as I am Canadian.
Also, I will be selling high-end designer t-shirts under my own label. I will be starting with just a couple designs... with myself being the only employee of the company. I won't be taking any significant loans (at least to start). I'm thinking sole-proprietorship should do me just fine until I become very profitable?
Hey I'm just wondering what type of business you run... sole-prorprietorship, partnership, LLC etc. Also, why do you find the way you did it advantageous compared to your other options?
I am especially interested in hearing what other Canadians have done, as I am Canadian.
Also, I will be selling high-end designer t-shirts under my own label. I will be starting with just a couple designs... with myself being the only employee of the company. I won't be taking any significant loans (at least to start). I'm thinking sole-proprietorship should do me just fine until I become very profitable?
Thanks
The only problem with sole proprietor is that you're also personally liable for your company, where corp & LLC offer some protection against personal liabilty when it comes to lawsuits.
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The only problem with sole proprietor is that you're also personally liable for your company, where corp & LLC offer some protection against personal liabilty when it comes to lawsuits.
As long as you have not acted in a way to open yourself up to a lawsuit. Some examples are personal guarantees on loans - liability for the debt, co-mingling of personal/business funds - disqualify the entity and protections, co-mingling of personal/business materials - disqualify the entity, illegal activities as part of the business - no protection there.
That is true, for the most part. But generally speaking, you are merely an employee of your own corporation, not an owner, per se. I'm not saying that what Fred said isn't true though, it absolutely is. You didn't see much corporate protection for Martha Stewart, did you??
We are not in canada.. but for right now we have the company as sole proprietor. We have talked to our cpa in detail about when we will become a LLC. There are advantages to both.. and disadvantages to both.. and alot of it is gonna depend on just where you business sits at the time.. ..
I know here in the US.. there are differant deductions you can take when you have a sole pr. that you cant as a LLC and visa versa..
So best advice i can give you is to talk to your cpa and perhaps a lawyer.. and they will know what is best for your business.
How do you organize your business? 
