The advantages are numerous. If your business activities are risky, incorporating will protect you at a legal level. If you make a lot of profit and you want to invest it cleverly, incorporating will allow you to save on tax. It also facilitates finding partners and investors.
Whatever your reason is behind it, you have made a wise decision. Now, you only need to incorporate, but you might not know where to start. Our team of professionals is there to help you and this article will guide you through the process.
First of all, it is possible to incorporate yourself. It’s not a technique our tax experts and accountants recommend, especially if your company has more than two shareholders. Indeed, the ligitation is more frequent when there is more than one shareholder. When at the head of a company, it is recommended to create a convention of shareholders on top of the incorporation. Be attentive if you are more than one, to make sure your company is considered a private company or a private issuer.
In Quebec, the two authorities that allow you to incorporate are the Registre des entreprises du Québec and Corporation Canada. You will easily find the forms and they are easy to fill. Many of our clients have incorporated their company themselves directly through these websites.
The advantage of incorporating yourself so is to save on fees. On the other hand, you won’t automatically receive your official corporate record of your legal entity with the shareholder resolutions.
However, while doing this process, you will get your certificate of incorporation. It will allow you to open an account at Revenu Québec and Canada Revenue Agency, as well as your corporate bank accounts.
Incorporate your company : provincial vs federal
There are two types of incorporation: provincial and federal. Federal charted incorporations are more expensive than the ones from Quebec. However, if you have the intention of developing your business in other provinces, it will be simpler.
On the other hand, if it is not in your plans, then you can go for the provincial charter. We strongly suggest you refer to a corporate lawyer in order to make the right decision. If you end up choosing the federal charter and your head office is in Quebec, you will still need to register your company at the Registraire des entreprises du Québec, since every company located in Quebec has to do so.
You will then start the process with both governments, as well as the legal organization of your business in corporate minute books.
The legal organization consists in electing a president, emit the rules of the company, emit your share certificates and establish resolutions. To do so, there are two options: consult a traditional law firm or an online solution.
Use the expertise of professionals to incorporate your company
In full knowledge of the cause, we think it is wiser to ask professionals to help you with the process. We also understand the desire of minimizing the costs when starting a company.
All in all, if you have any doubt or question regarding the process of incorporating, don’t hesitate to contact us. T2inc.ca can give you information on the different fiscal aspects of such a process and we will be pleased to guide you through it.
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