Incorporation segregates personal and business assets. If you carry on business in your own name, a registered name style or even in partnership, all of your assets are at risk. You are fully liable for the total debts and liabilities of the business, even if only one of many partners. If sued, all your assets (personal and business) can be seize to satisfy the debt. Only incorporation can protect you personal assets.
While a proprietorship's or partnership's income is taxed in the hands of the owner, a corporation's income is taxed separately from its owners. A qualified Canadian Controlled Private Corporation, is taxed at a reduced rate. Further tax is deferred until dividends are paid and this deferral may be significant.
Further a capital gains exemption (on the first $850,000 of capital gains) may be available upon the sale of a small business.
Inc., Limited and Corp. designate a company that is incorporated It is a powerful statement to customers, suppliers and employees that the company is an entity larger than its owners.
A corporation survives its owners, the shares can be transferred to purchasers as an ongoing business or by gift or Will to the beneficiaries and heirs of the owners. Shares and options may be given to employees.
A corporation is a separate entity from its owners. It can contract and borrow on its own account.Â It can raise capital by pledging its distinct assets or the issuance of shares. Name Search
Your proposed name is searched in a database of company names to ensure that your business is not in conflict with a similar named business or infringes upon the rights of a trademark holder. Through our automated systems, we can usually obtain a full search within hours
Articles of Incorporation
A Corporation is formed by filing Articles of Incorporation. Upon receipt of your instructions we prepare an authorization for your signature. Upon receipt of the authorization and funds we prepare the Articles which are filed electronically with the Ministry You may forward funds by courier or electronic funds transfer.
The Articles of Incorporation are filed with the Ministry. In Ontario most companies are incorporated the same day.
Initial Shareholder & Director Meetings
We provide Minute Book, Seal, Share Certificates, bylaws and complete initial minutes issuing the shares, electing directors and appointing officers. These documents are forwarded to your for signature. It is your option to retain the Minute Book or return the minutes for inclusion in the Minute Book to be held at our offices.
Upon incorporation we file the required forms to the Ministry showing the directors and officers of the corporation.