Incorporating your business

Incorporating a Business

A business often begins as a sole proprietorship and then, as it grows, is carried on through a corporation.  As with anything else in life, carrying business through a corporation has its:

Pros:

  • Limited liability;
  • Creditor protection;
  • Lower tax rates;
  • Opportunities for Tax Planning; and

Cons:

  • An additional layer of tax – corporate and individual;
  • Maintenance costs;
  • Compliance costs;
  • Dealing with other shareholders, however, that may be made easier with a Shareholders’ Agreement in place.

The decision on whether to incorporate will depend on many factors.  We can assist with it.

Your Company May Be Incorporated Under Provincial or Federal Legislation

You may incorporate under either the Business Corporations Act of BC or under the federal legislation, the Canada Business Corporations Act.  Companies can, after incorporation, change their status from federal to provincial or from provincial to federal.  Which incorporation jurisdiction will fit your goals depends on your set of facts.

Registered and Records Office

 Granville Law Group provides registered and records office services to corporations.  That will ensure that no annual filings are missed and all the documents are in place in compliance with the corporate law. 

 

FAQ for Incorporating a Business

1. What is the process of incorporating a business in Canada?

Incorporating a business in Canada involves choosing a business name, completing articles of incorporation, creating corporate bylaws, appointing directors, and filing necessary documents with the federal or provincial government.

2. What are the benefits of incorporating a business?

Incorporating provides limited liability protection, potential tax advantages, enhanced credibility, easier access to capital, perpetual existence, and the ability to transfer ownership more easily.

3. How much does it cost to incorporate a business in Canada?

The cost varies depending on the province and whether you incorporate federally. Typically, it ranges from $200 to $500 for filing fees, plus additional costs for legal advice and other services.

4. Can a single person incorporate a business?

Yes, a single person can incorporate a business in Canada. One individual can act as the sole director, officer, and shareholder of the corporation.

5. What documents are required to incorporate a business?

Key documents include the articles of incorporation, corporate bylaws, the initial board resolution, share certificates, and a government filing receipt. Additional documents may be needed depending on the jurisdiction.

6. How long does it take to incorporate a business?

The time frame can vary, but it generally takes between 5 to 15 business days for provincial incorporation and slightly longer for federal incorporation, assuming all documentation is complete and accurate.

7. What are the ongoing compliance requirements for a corporation?

Corporations must file annual returns, hold annual meetings, keep accurate financial records, and comply with both federal and provincial regulations. They may also need to file corporate taxes and maintain up-to-date records of directors and shareholders.

Ready to Incorporate?

Call Alina Nikolaeva at 604-443-5678 to schedule a consultation.

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