Questionnaire
Sole proprietorship or partnership: Is it right for you?
Yes No  
You will be the sole owner or own the business with just a few partners or family members.
You plan to start the business using only personal savings or investments from friends and family.
You expect business revenues to support only you and your partners or family members.
You plan to do most of the work yourself.
You will borrow personally on behalf of the business.
You are in a low personal income tax bracket.
Your business is highly unlikely to face a lawsuit or get into debt.
You have limited net worth (personal assets).
*If you answered yes to most of these questions, you should operate your business as a sole proprietorship or partnership.

Corporation: Is it right for you?
Yes No  
Ownership will be divided among several shareholders
You expect significant start-up costs.
You will be hiring employees and paying out wages and salaries.
You will require additional financing beyond savings and investments from family and friends.
You expect increasing revenues and a rising asset base.
You will probably need to raise equity or issue debt, either now or later.
You will put a full management and organizational structure in place.
You expect to look into income-splitting and tax-deferral options.
You want to protect your existing substantial net worth.
*If you answered yes to most of these questions, you should operate your business as a corporation.