Registering new business, but have question

[Dedicated37]

I am starting up a window cleaning business in Ontario, Canada with my friend and we are wondering whether we should register the business as a Sole Proprietorship or a Partnership or a LLC. We would like as little liability on us as possible and are thinking a LLC is the way to go..

Which type should we go with and how would you go about registering it as a LLC?

Also, how would we go about making sure no one can steal the name?

Thanks in advance

[Terry Justice]

I would register as an LLC for several reasons. 1) If set up appropriately it will help shield your personal assets from liability. 2) Due to the nature and danger of the business 3) you will have a single partner in the business.

Keep in mind that it will not protect you from gross negligence.

Your business and personal bank accounts will need to be completely independent. Set it up as though you are working for someone else and pay yourself a salary each month. At the end of the year you can always take a bonus if the business has done well.

It will be critical that you decide up front who is the majority owner. I do not recommend a 50/50 split. I have seen many business fold due to discord amount the principals. This is especially true for partnerships.

You will also need to secure an additional umbrella liability policy. I would recommend $2,000,000 due to the nature of the business.


Will you employ additional workers? If so, will they be 1099 independent contractors? or actual paid employees of the company?

[Dedicated37]

Thank you for your response.

1. How would we go about setting it up as a LLC in Canada? Would we have to register it as a sole proprietorship first or a partnership and then transfer it to a LLC? .. Can I set it up as a sole proprietorship first then make it a LLC? What's best.

2. We are aiming to hire some first or second year university/college students within the next month or so. So I'm presuming we will be paying them as employees?

3. I also have another question about trademarking the name. If we register the business does this make it so that no one can take our window cleaning business name?

Thanks a lot for your help

I would register as an LLC for several reasons. 1) If set up appropriately it will help shield your personal assets from liability. 2) Due to the nature and danger of the business 3) you will have a single partner in the business.

Keep in mind that it will not protect you from gross negligence.

Your business and personal bank accounts will need to be completely independent. Set it up as though you are working for someone else and pay yourself a salary each month. At the end of the year you can always take a bonus if the business has done well.

It will be critical that you decide up front who is the majority owner. I do not recommend a 50/50 split. I have seen many business fold due to discord amount the principals. This is especially true for partnerships.

You will also need to secure an additional umbrella liability policy. I would recommend $2,000,000 due to the nature of the business.


Will you employ additional workers? If so, will they be 1099 independent contractors? or actual paid employees of the company?