Should I Cancel My Business? +
We recommend considering cancellation for several reasons.
- Public Visibility: Once your business is registered or incorporated, it becomes publicly listed within the jurisdiction where it is established. Unless you cancel or dissolve the business, it will remain listed, either for a specific duration or indefinitely.
Tax Obligations: When you establish a business, Revenue Canada typically maintains data related to that business. If you have filed tax returns as an individual or on behalf of a corporation, Revenue Canada may anticipate and require payment from you or the business, even if it is no longer operational but still active.
- Liability: As long as your business remains active, there may be concerns about potential liabilities associated with it, regardless of whether you are still operating or not.
Cancellation vs Dissolution+
Canceling Your Business - Master Business License/Business Name Registration
Cancellation of a business refers to terminating the rights and privileges associated with its Master Business License or Business Name Registration.
To complete the process, businesses need to file the cancellation with the Provincial government. This involves submitting the original registration information, including the Business Identification Number (BIN), name, type of business, and other relevant details.
Our services assist businesses in properly registering their cancellation to expedite the process and avoid complications.
Cancellation is necessary when businesses wish to change their name, structure, or cease operations. By completing the cancellation process, businesses can terminate future liabilities and establish an official end date. After the cancellation is finalized, it should be provided to the financial institution and tax account branches to close any existing accounts.
Business Dissolution - Incorporation +
Business dissolution occurs when a company legally terminates its existence. Companies looking to dissolve their business must consider several factors. The proper forms must be filed, and you must demonstrate your authority in registering the dissolution.
If incorporated in Ontario, as of October 2021, the dissolution and tax verification is completed between government agencies. Previously, you had to contact the Minister of Finance directly to update your corporate tax return prior to completing Articles of Dissolution. That is no longer required making the dissolution of an Ontario corporation much easier. If there are debts and assets of the corporation, these still require resolution before completing the dissolution process via Articles of Dissolution.
If your corporation was incorporated federally with Corporations Canada, it can also be easily dissolved through our online platform. We prepare the Articles of Dissolution according to your instructions and provide the documents to you in 'draft' for your review prior to filing with the federal government. If your corporation has operated within the Province of Ontario, you can also cease operations with us simultaneously. The federal Articles of Dissolution are prepared and filed on a same day basis with your authorization and are typically returned same day or the following business morning.
What Do I Do After I Cancel My Business? +
If your business is a sole proprietorship, you're responsible for all the debts incurred. Although it's difficult to walk away when your business is still in the black, one way of overcoming a potential problem is to make sure the business' assets always outweigh its debts.
Notify The Appropriate Agencies
After you've informed staff and/or colleagues, it's important to contact the Canada Revenue Agency (CRA) to file a final tax return and pay any outstanding taxes.
Close Payroll and HST/GST accounts with the CRA - you'll have to use the appropriate CRA forms to accomplish this. If a business owner has debt obligations to the CRA, the CRA can directly contact clients for payment options. Clients are no longer obligated to pay the business, but instead, they pay the government on behalf of the business.
As a business owner, the best thing you can do after you've decided to dissolve your business is to ensure you've taken all the necessary steps. If you're unsure about how to proceed in the dissolution process, contact our team at Ontario Business Central. We offer same day cancellation and 24-hour preparation for incorporated companies and Ontario registered businesses.
Ontario Business Registry: Streamlining the Closure Process +
The Ontario Business Registry plays a vital role in the closure process for businesses operating in the province. Familiarizing yourself with the registry and its functions can help streamline the closure of your business. Here are some key aspects to consider:
Understanding the Ontario Business Registry +
The Ontario Business Registry serves as a centralized repository of business information. It houses records of registered businesses, including sole proprietorships, partnerships, and corporations. When closing your business, it is important to review and update your registration information within the registry.
Corporate Filing Requirements +
For businesses registered as corporations, compliance with corporate filing requirements is crucial. These requirements typically include submitting annual reports, financial statements, and other corporate documents. Before closing your business, ensure that all necessary filings are up to date to avoid any potential penalties or legal complications.
Corporate Profiles and Reports +
Reviewing your corporate profile and reports is essential when closing your business. These documents provide valuable information about your business's status, including outstanding filings, compliance issues, and financial standing. Understanding your corporate profile helps ensure that all necessary steps are taken to close your business smoothly.
By familiarizing yourself with the Ontario Business Registry and its various components, you can navigate the closure process more effectively. Understanding the significance of business name registrations, corporate filing requirements, conducting name searches, and reviewing corporate profiles and reports will help you take the necessary steps to close your business in Ontario efficiently and in accordance with legal obligations.
Harmonized Sales Tax (HST) +
Closing a business in Ontario involves addressing any Harmonized Sales Tax (HST) obligations. This includes filing final HST returns, remitting any outstanding HST amounts, and canceling your HST account with the Canada Revenue Agency (CRA).
Dissolving a Corporation +
For businesses registered as corporations, dissolving the corporation is a necessary step in the closure process. This involves following the legal procedures outlined in the Corporations Act and filing the appropriate Articles of Dissolution with the Ontario government.
Not-for-Profit Organizations +
Not-for-profit organizations have specific considerations when it comes to closing. It's important to comply with the applicable regulations and notify relevant stakeholders, such as members, donors, and governing bodies.
Termination of Employment +
Closing a business often involves terminating employees. It's crucial to understand the legal requirements regarding notice periods, severance pay, and employee rights to ensure compliance with Ontario's employment standards.
Closing Your Business in Ontario +
Closing your business requires careful attention to detail. This section outlines the step-by-step process of closing a business in Ontario, including notifying stakeholders, canceling licenses and registrations, settling liabilities, and distributing assets.
Government Agencies and Accounts +
Business Records and Documentation +
Properly managing your business records and documentation is essential during the closure process. This section highlights the importance of maintaining accurate records, archiving corporate documents, and handling confidential information in compliance with privacy laws.