New Business Structuring Services

We know how overwhelming it can be to start a new business; there are many components that need to be arranged. In particular, proper tax and legal structuring of new business ventures and relationships is vital. Working in collaboration with your legal team, we can provide guidance on:

  • Shareholder & partnership agreements
  • Employee share ownership plans
  • Private health services plans
  • Independent contractor agreements

Legacy’s team takes the time to understand your new business to be able to provide a detailed analysis of your tax and legal needs. Based on initial discussions with you, Legacy will advise on the best course of action to ensure that your new business is correctly structured for tax and legal purposes. You will also receive assistance with implementing your tax strategy to ensure each step is followed.

If you are starting a new business and would like to learn more about Legacy’s New Business Structuring services, contact us today.

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Frequently Asked Questions on
New Business Structuring
 

Choosing the right business structure is one of the most important decisions you’ll make as an entrepreneur, as it impacts taxation, liability, and operational flexibility. The main types of business structures in Canada include:

  • Sole Proprietorship – Owned by one person, this structure offers full control but also unlimited personal liability for business debts. It’s simple and cost-effective to set up, making it ideal for small business owners.
  • Partnership – A business owned by two or more people, classified as a General Partnership (GP), Limited Partnership (LP), or Limited Liability Partnership (LLP). While partnerships allow shared investment and expertise, general partners remain personally liable for business debts.
  • Corporation (Inc.) – A separate legal entity that provides limited liability protection for shareholders and potential tax benefits. However, it comes with more regulatory compliance and administrative responsibilities.
  • Cooperative (Co-op) – A business owned and operated by its members for their mutual benefit, typically used in community-based enterprises or industries with shared resources.
  • Non-Profit Organization – Formed for charitable, educational, or social purposes, non-profits may qualify for tax-exempt status but must adhere to strict regulations.

Each business structure has unique legal and tax implications, so selecting the right one is crucial for your long-term success. At Legacy Accounting LLP, we guide business owners through this process, ensuring their structure aligns with their financial and operational goals. Contact us today to find the best fit for your business.

Your business structure directly affects your tax obligations, risk exposure, and ability to grow. For example:

  • Sole proprietors report business income on their personal tax returns but face unlimited liability for business debts.
  • Corporations benefit from limited liability protection, which shields personal assets from business debts. However, corporations must also comply with more complex tax regulations and administrative requirements.
  • Partnerships and cooperatives have shared tax and liability implications that require careful planning to ensure fairness and compliance.

Selecting the right structure is not just about taxes—it’s about protecting assets and optimizing business growth. Legacy Accounting LLP helps business owners choose the most tax-efficient and legally sound structure, ensuring long-term financial stability. 

An Employee Share Ownership Plan (ESOP) allows employees to acquire equity in the company, fostering increased employee loyalty and retention, and potential tax advantages for both employees and employers. They also allow the employees and the business to better align their interests.

ESOPs can be a powerful tool for attracting top talent and ensuring employees are invested in the company’s long-term success. However, implementing an ESOP requires careful financial and legal structuring to ensure compliance and maximize benefits.

Legacy’s accountants help businesses design and implement ESOPs that align with their financial and operational goals. Contact us to explore how an ESOP can strengthen your workforce and business growth.

A well-drafted shareholder or partnership agreement is essential for any business with multiple owners. These agreements define:

  • Ownership rights and responsibilities
  • Decision-making processes
  • Dispute resolution methods

Without a clear agreement in place, misunderstandings can lead to costly legal disputes and jeopardize business stability. A properly structured agreement ensures that all partners or shareholders are protected and aligned in their vision for the company.

Legacy Accounting LLP works with businesses and their legal counsel to draft legally sound agreements that safeguard their business relationships and operations. Schedule a consultation today.

A Private Health Services Plan (PHSP) is a cost-effective way for businesses to provide tax-free health benefits to employees. These plans offer tax-deductible health benefits for the business and tax-free coverage for employees. Businesses can even see increased employee satisfaction and retention.

PHSPs are especially beneficial for small businesses looking to offer affordable healthcare solutions without the high costs of traditional group insurance.

We can help you assess whether a PHSP is the right fit and guide you through the implementation process. Contact us today to explore how a PHSP can benefit your employees and your bottom line.