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18 + WATERLOO CHRONICLE * Wednesday, April 9, 2008 So you know what business you want to go into, and you have decided on a catchy name for it. Now what? This is the point where you want to take the proper and legal steps in setting up and Starting a small business requires some structure running your business By the time you are finished you will have dealt with all three levels of your governâ€" ment (federal, provincial and municipal). So let‘s get started. You have basically three choices on how A general partnerâ€" ship is just like a sole proprietorship, but instead of one indiâ€" vidual there are two or more registered as owners of the busiâ€" ness. Essentially you (and your partners if you decide to set up a partnership) are the business, and the business is you. So what that se means is you get to keep all the profit for yourself â€" claiming it as selfâ€"employment income on your personal tax return. You also get all the liability (if there is any). s _ Now liability in the form of a shortâ€"term operating loss is not so bad. You can claim business loses on your tax return reducing your net taxable income. You wouldn‘t want to see a loss year after year, but in the initial startâ€"up year or two it can give you some tax advantages. Watch out for other forms of liability, however. Depending on the nature of your business you may have a potentially higher risk operation. And, even with liability insurâ€" ance to protect you against being sued, your insurance may not completely cover you in the event of a highâ€"price court settlement. Let me give you an example. Let‘s say you want to start up a bungee jumping operation on the Highway 8 bridge over the Grand River â€" note to self, it‘s a very highâ€"risk business. â€" You have your liability insurâ€" ance for $2 million so you figure A papers for you. _ That will cost you an additional $500 to $1,000 for lawyer fees. o So, if you incorporate you will have a higher level of personal protection, but it will cost you significantly more to set up the corporation. The fee to register a sole proprietorship or partnership is only $60, and it can be done online. This gives you a business licence to operâ€" ate your business anywhere in the province of Ontario. â€" So now you have a better idea of your options for setting up your business. If you still can‘t decide whether to go the lone ranger route or form a living breathing corporate entity to run your business, email me at rweber@waterloo.ca or call me at 519â€" 747â€"6265 and I can help clarify this issue in more detail for you. W. Roy Weber is the smallâ€"business advisor for the Waterloo Region Small Business Centre, located at 100 Regina St. S. He will answer the public‘s questions in future editions of the Chronicle. Incorporation is another form of business structure that you may want to consider, but it comes at a cost. The government registration fee alone is $360 (if you register with the province of Ontario), or $250 plus an annual filing fee (if you register with the federal government). The filing procedure is not as straight forward as a sole proâ€" prietorship or partnership, so you are best advised to have a lawyer file the incorporation