How to change from a small business to an incorporated company?
If you currently have a Sole Proprietorship or General Partnership and are looking to incorporate the same business, here is information to assist you in completing.
Why do people change from a Sole Proprietorship or General Partnership to Incorporation?
- Sales increase to a point where there may be tax savings having an incorporated company
- Advertising the business and concerned about the business having name protection
- Liability protection for personal assets
- Contract where businesses wish for your business to be incorporated
- Partnership with new company or individual
What if I want to use the same name for the incorporated business from my current registration?
Anytime you wish to change from your current registration to an incorporated company, you may do so. Your current registration will not interfere with you incorporating the same name business. As long as there are not any existing businesses listed with a similar or same, the process will be seamless.
What will need to be changed when I incorporate?
- Bank account – incorporating puts your business in a new business category with most banks. A new bank account may be required
- Cheques – new cheques will be needed with the business name including legal ending
- Tax accounts – HST, payroll, WSIB, etc will need to be set up or changed
- Business cards – to reflect new corporate name
- Letter head – to reflect new corporate name
- Logo – if business name is listed
What do I do with my current Sole Proprietorship or General Partnership
It may take a week or two to get everything set up for the new corporation including bank account, cheques, business cards etc. Once completed, you will want to cancel the current registration to put an end date to operation of the registration. If you have existing HST, WSIB, payroll accounts with the registration, these should also be cancelled.
To use our services to complete an incorporated company, here are the links to either an Ontario or Federal Incorporated company.
**OUR INFORMATION IS SIMPLY A GUIDE TO ASSIST YOU. WE ARE NOT A LAW FIRM NOR AN ACCOUNTING FIRM.**
Laura Harvey is an entrepreneur herself as the owner of Ontario Business Central Inc. Her passion has always been about supporting the entrepreneurial spirit and advancement within Canada.
Laura authors in-depth blogs for Ontario Business Central assisting entrepreneurs and business owners to start, manage and grow their businesses. She has almost 30 years of expertise as a corporate specialist and 25 years of being an entrepreneur. Laura has the unique position of supporting a community that she also belongs to. She walks the walk right along with you.
You can find Laura on Linkedin and Twitter.