As a Gas Fitter in BC, is there an advantage to having your company LTD. or Incorporated? (more of a legal question I guess)
As a contractor myself I was looking for a bit more clarification to the question above. Really just wanting to know from the Pro's which is better from an insurance point of view.
It is all the same thing and has no bearing on insurance.
In Canada entities can be incorporated under either federal or provincial (or territorial) law. Unlimited liability corporations can be formed in Alberta "AULC" and Nova Scotia "NSULC".
The word or expression Limited, Limite, Incorporated, Incorpore, Corporation or Societe par actions de regime federal or the corresponding abbreviation Ltd., Lte, Inc., Corp. or S.A.R.F. forms part of the name of every entity incorporated under the Canada Business Corporations Act (R.S., 1985, c. C-44). Ltd. or Plc (UK)
As an exception, entities registered prior to 1985 may continue to be designated Societe commerciale canadienne or by the abbreviation S.C.C.
Under the Canada Cooperatives Act (1998, c. 1), a co-operative must have the word cooperative, co-operative, coop, co-op, cooperative, united or pool, or another grammatical form of any of those words, as part of its name.
Unlike in many other Western countries, Canadian businesses generally only have one form of incorporation available. The aforementioned AULC and NSULC are generally not used as operating business structures, but are instead used to create favorable tax positions for either Americans investing in Canada or vice versa.
Rather, Canadian businesses are generally formed under one of the following structures:
SP (Sole Proprietorship): No formal business structure is established
GP (General Partnership): Either a formal structure with a partnership agreement, or an informal structure, in which case the Partnerships Act for the province will apply
LP (Limited Partnership): An investment structure, limiting both the liability and the participation of the investor. An investor who takes an active role will be deemed a general partner, and become exposed to unlimited liability.
Joint Venture: A business activity shared by two or more business entities. The joint venture's activities must be finite in terms of either time or scope.
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