Although every country has its own set of laws and procedures for business registration, there are generally three main types of business:
1. Sole proprietorship
2. Partnership
3. Corporation

Sole proprietorship:
You are fully responsible for all debts and obligations related to your business and all profits would be yours alone to keep. As a sole owner of the business, a creditor can make a claim against your personal or business assets to pay off any debt.

Partnership:
You combine your financial resources with a partner into the business. You can establish the terms of your business with your partner and protect yourself in case of a disagreement or dissolution by drawing up a specific business agreement. As a partner, you would share in the profits of your business according to the terms of your agreement.

Corporation:
By incorporating your business, it is considered a legal entity that is separate from the owners and shareholders. As a result, you will not be personally liable for the debts, obligations or acts of the corporation. This can be done at the federal or provincial level.