We are asked this great question on a daily basis. There are 2 formats to start a new business within most jurisdictions within Canada. They include either registering a business registration or Master Business Licence or Incorporating.
Let’s take a quick view of what an incorporated company offers you as a business owner within any jurisdiction in Canada.
If you are using a business name to operate your business, completing an incorporated company provides name protection for that business name within the jurisdiction you incorporate. To keep it simple, if you decide to incorporate ABC Holdings Inc. in the Province of Ontario, once you have incorporated the business name, no one else within Ontario can use that exact corporate name as the Province will not allow it.
If someone incorporates a similar named corporation such as ABC Holdings LTD or ABC Holdings as a registered business and they operate within the same industry, you may be able to request that the business name is changed. Your business name is your BRAND and the name becomes more and more important to you the longer you have your business. This may be one compelling component in opting to incorporate.
If the type of business you are operating provides either personal or property risk to others, incorporating a business provides the greatest distance between you and your personal assets to the business and its risks. To give you examples, if your business is working on peoples websites from home, your risk may be considered minor. If your business is completing landscaping for home owners, your risk may be considered more significant. Whether you choose to incorporate or not, it is always advisable to get business insurance coverage as well.
I don’t know anyone who likes this subject or paying their taxes however it’s a burden we all share. Incorporating a company may assist you to reduce your taxable income. How does this happen? Incorporated companies are taxed at a lower tax rate than individuals however to access this tax benefit, you must be able to keep money within the corporation instead of drawing the money over to yourself personally. Just to ensure you understand this, when you have an incorporated company, it’s a separate entity or being from you as a person. When you earn money, say $100.00, the money is put in the corporate bank account and the corporate tax is applicable. If you take that $100.00 and transfer the money over to you personally, you will have both a corporate and personal tax bill. If you are able to keep even $5.00 in the corporate account without transferring it over to you personally, you will save tax dollars.
Fees to Incorporate
The fees in general to incorporate are around $600.00 including agent and government fees and the transaction is available on a same day basis.
If you have additional questions, please feel free to contact our office. We are also available to help new business owners.
I hope you enjoyed this blog and have found it to be informative.
We at Ontario Business Central Inc. have been assisting people to establish their businesses since 1992. If you wish to file the Articles of Incorporation manually, we have staff available to go to the government office and file the documents on your behalf. If you wish to incorporate electronically, our website offers a quick and easy way to electronically file the incorporation.
Our staff at Ontario Business Central is available to assist you with any questions related to setting up your business in pursuit of your dreams.
If you wish to file the Articles of Incorporation and you wish to use our service to file on your behalf, please contact our office at 1-877-306-9458.
If you would like us to assist you with completing the electronic incorporation, here is the link to incorporate in many provinces thru our website.
British Columbia Incorporation
Ontario Business Central Inc. is not a law firm and cannot provide a legal opinion or advice. This information is to assist you in understanding the requirements of registration within the chosen jurisdiction. It is always recommended, when you have legal or accounting questions that you speak to a qualified professional.
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.