To incorporate or not? Whether you are just getting started or have already launched your business, you have probably thought about this question. If you’re reading this post, then it’s likely that you’ve decided to take the leap.
We’ve got you covered with a free incorporation checklist. For any other questions, don’t hesitate to contact us.
BENEFITS OF INCORPORATING
There are many benefits to incorporating your business.
Limited personal liability | A corporation is a separate legal entity from its owners (you). As a result, it has the advantage of limiting the liability of its directors. |
Unlimited life | Generally, a corporation can exist forever. When shareholders die, their shares are transferred to their heirs or through a sale. |
Lower taxes | Corporate tax rates are generally lower than personal taxes. |
CONSULT A LAWYER
As there are many steps to incorporating, we strongly recommend you have your articles of incorporation reviewed by a lawyer before filing them.
For example, consider the corporation’s share-capital structure. Will you have one class or multiple classes of shares? Do the share classes have the same rights? Which class of shares will entitle shareholders to vote on matters? Which class of shares will be entitled to receive any declared dividends? Will there be investors? It's important to discuss these (and other) questions with your lawyer before incorporating so that you can create the structure that is right for your company.
Additionally, privately-held corporations must consider other laws, such as the Securities Act. It costs far more (in time, money, and potentially taxes) to fix an incorporation that is not well-done than doing it right the first time.
STEPS TO TAKE AFTER INCORPORATING
Once you receive your certificate of incorporation it’s time to organize. This includes the following:
Applying for your GST/QST tax numbers
Holding a directors’ and a shareholders’ meeting
Electing the directors
Appointing the officers
Choosing a bank for your corporation
Choosing your accounting firm
Appointing an auditor (or deciding not to appoint one)
Issuing your shares
Creating your minute book
Creating the securities register
Creating the directors and officers register
Applying for any necessary permits
And more.
To get you started on the right track, we've compiled an incorporation checklist. Click on the link below to get your free copy. Don't hesitate to contact us for any business needs or concerns.
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