LEGAL PROTECTION OF

BUSINESS
Entrepreneurship Sec B
Stage 8 Organizing Your
Business
Organize Your Business
Select the organizational structure for your business

Sole
Partnership Corporation
Proprietorship

Select and Select and Select a

register a register a corporate
business name partnership name name

Draw up a Draw up
partnership articles of
agreement incorporation

File for incorporation

with provincial or
federal government

Comply with Comply with Deal with Consider

provincial licensing municipal licensing mandatory employment
requirements requirements deductions standards
Forms of Business Organization
Sole Proprietorship

Advantages
Simple and
inexpensive to start Disadvantages
Individual control Unlimited liability
over operations More difficult to
All profit to the obtain financing
owner Limited resources
Losses deductible and opportunity
from any other
income
Forms of Business Organization
Partnership

Advantages
Pooling of financial
resources and
talents
Disadvantages
Simplicity and ease
of organization Unlimited liability
Increased ability to Divided authority
obtain capital
Potential for growth
Forms of Business Organization
Limited Partnership

Advantages
Limited liability for
limited partners
Disadvantages
Centralized
management
Difficulty in changing
ownership
 Forms of Business Organization
Corporation

Advantages
Limited liability Disadvantages
Continuity of the Cost
business Legal formalities
Easier to raise Inability to flow
capital losses through to the
Potential employee shareholders
benefits Need for personal
Tax advantages guarantees
Other Legal Requirements

Licences and Permits

Municipal
Provincial
Land Use and Zoning
Mandatory
Deductions
Income Tax
Employment
Insurance
Canada Pension Plan
Taxes
Provincial Sales Tax
GST/HST
Employment
Standards
 Types of Insurance
1. General Liability
Insurance 5. Disability or Accident
and Sickness
2. Business Premises
Insurance
Insurance
6. Key Person Insurance
3. Business Use Vehicle
Insurance 7. Credit Insurance
4. Business Interruption 8. Surety and Fidelity
or Loss-of-Income Bonds
Insurance 9. Partnership Insurance
10. Workers
Compensation
Stage 9 Protecting Your
Idea
Protect Your Idea
Protecting your intellectual property

Apply for any Register your Copyright Integrated circuit

patents trademarks protection topographies
Forms of Intellectual Property

Patents
Trademarks
Copyright
Industrial Designs
Integrated Circuit
Topographies
 Patent

Can be granted to the inventor of any

new and useful product, chemical
composition, machine or manufacturing
process
Awarded on a first to file basis
Protection provided for 20 years from
date of application
The onus is on you to protect your rights
under the patent
Holding a patent does not necessarily
mean commercial success
 Trademark

A word, symbol, picture, design, or

combination of these that distinguishes your
goods and services from those of others
Can be registered to enable you to obtain
exclusive use
Non-mandatory that it be registered but does
establish obvious proof of ownership
Registration is effective for 15 years and may
be renewed for a series of 15-year terms as
long as it is still in use
Onus is on the owner to police the use of the
trademark
Registration in Canada provides no protection
 Copyright

Copyright precludes others from reproducing

or copying your original published work--
books, leaflets, lectures, maps, musical
compositions, computer programs, etc.
Exists for the duration of your life plus 50
years after your death
No legal requirement the work be registered;
copyright is automatically acquired upon
creation of an original work
Responsibility for policing copyright rests with
the holder
A copyright in Canada provides simultaneous