Deciding to incorporate your business gives you a variety of advantages. With the help of a legal professional the process is very straight-forward and will be a great help for the future of your company.
Advantages of Incorporating Your Business
By making your company a corporation, you are given a layer of protection of your personal assets against business liabilities. Incorporating your business has the effect of making the business a distinct legal entity, separate from the people who own it and run the day-to-day operations. The Courts are extremely reluctant to look behind the corporation and pursue its Directors and this only happens in extreme situations of fraud or gross negligence.
Another benefit is that incorporated businesses are able to apply for a variety of government programs and grants. As a further financial benefit, incorporations may be eligible for tax advantages, depending on the structure and organization of the business.
Incorporating your business makes ownership of the company transferable and allows for more than one owner. Taking this step simplifies the process of planning for retirement, which better prepares the business and its owners for the future.
How to I incorporate my business?
Incorporating a business requires filling out and submitting various supporting documents. This can be efficiently managed with the assistance of a legal representative. Here are some of the details you will need to provide:
Choose a Name
An important step is the choosing of a corporate name. You’ll want to confirm that the name isn’t being used by someone else and that is distinct and memorable for your business. If you would prefer, you can choose instead to simply receive a corporation number, rather than choosing a name.
Provide Business Information
You will be required to include a description of your business and its activities, along with the names of directors and shareholders of the business. Along with this basic information, you will need to determine various financial processes and shareholder rights as well.
Provide Registered Corporate Address
In order to become a corporation in Ontario, you must have a registered corporate address within the province.
Once your Incorporation application is approved, you will receive Articles of Incorporation, a legal document that spells out the details of the registration of your corporation.
Follow-Up Action Steps
Within 60 days of being incorporated, you will need to submit additional documentation, including a Notice of Change and your Initial Return.
There are many resources online that can help you through this task. If you are unsure and are looking for professional assistance, Epstein & Associates has the necessary expertise and experience to handle your situation.