The trade name is the simplest form of a business organization. The proprietor assumes all responsibilities for the business including financing, operation, taxes, and accepts all profits or losses. If the business fails, the owner must assume total liability. This means all assets, whether business or personal, can be legally taken and used to discharge the liability.ADVANTAGES:- Organization can be informal and flexible.- Easy to start and affordable.DISADVANTAGES:- Profits are personally taxable.- The company ends with the death of the proprietor.- Personally liable for all debts and judgments against the business. -Filing a declaration does not give any right of ownership of the name.The incorporation is a separate legal entity from the directors or shareholders within the corporation. There will be a separate tax filing for the corporation, separate from the directors or shareholders within the corporation.ADVANTAGES:-Limited liability - The limited company forms a distinct legal entity apart from the owners. Therefore, no shareholder of the company can be held personally liable for the debts, obligations or acts of the company. The liability of a shareholder is limited to the value of that shareholders shares.- Ownership of a limited company is easily transferred by the selling of shares, without upsetting the management of the business.- No other limited company can use the exact same name.- The life of the limited company does not end with the death of a shareholder.DISADVANTAGES:- Costs are higher when incorporating and additional records are required.-Annual returns must be filed yearly to keep the company active.West-End Registries may provide general information. When deciding on what type of business you should register, we are unable to provide legal advice. We recommend that you consult with a lawyer or an accountant.