Reading though the Wikipedia article on Types of Business Entities in Canada, I can see how some Freelancers would fit in different parts of the list:
Rather, Canadian businesses are generally formed under one of the following structures:
SP (Sole Proprietorship): No formal business structure is established
GP (General Partnership): Either a formal structure with a partnership agreement, or an informal structure, in which case the Partnerships Act for the province will apply
LP (Limited Partnership): An investment structure, limiting both the liability and the participation of the investor. An investor who takes an active role will be deemed a general partner, and become exposed to unlimited liability.
Joint Venture: A business activity shared by two or more business entities. The joint venture's activities must be finite in terms of either time or scope.
I have also heard that freelancers should change their entity to something such as a corporation, mostly for tax purposes. What benefits does one gain by becoming a Corporation, and how would one go about it legally?