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.